Bitcoin (BTC) started the week recovering 6% from Friday’s drop and attempting to reclaim a crucial area that could set the stage for a trend continuation. However, some analysts have advised caution as BTC’s next leg up could be delayed until December.
After the end-of-week market downturn, Bitcoin has bounced to the $110,000 level and is attempting to turn this area into support again. Notably, the flagship crypto has been trading within the $108,000-$120,000 price range since July.
Similarly, Sjuul from AltCryptoGems highlighted that despite the current market sentiment, which shows the Fear and Greed index remains at fear levels, the flagship crypto is “still perfectly holding that flipped resistance level,” around $108,000, and is holding it as support.
To achieve this, the analyst explained that Bitcoin must reclaim its 21-week Exponential Moving Average (EMA) as support, which was lost after Sunday’s close below the $110,000 mark. The 21-week EMA has served as support during pullbacks since late Q2.
“As part of this consolidation, there is a potential Lower High developing which isn’t yet solidified; the upcoming Monthly Close will inform more about whether that indeed will become a resistance,” he detailed
Rekt Capital concluded that a monthly close above the Lower High would invalidate the potential setup, and a close above the range high resistance would position Bitcoin for a range breakout, “especially if a November post-breakout retest of $116k into new support takes place.”
As of this writing, Bitcoin is trading at $110,850, a 2% increase in the daily timeframe.
