Bitcoin appears to be weakening a key resistance level, indicating that a significant breakout to higher price levels is not a distant dream.
Bitcoin is trading around $91,000, down less than 2% in the past 24 hours. If the current momentum holds, BTC will correct by 1.44% on Thursday, marking the second consecutive day of daily red candlesticks.
Resistance once again hinders Bitcoin growth
Notably, Bitcoin faced rejection from familiar territory on Wednesday. After reaching the high of $93,460 on December 3rd, the supply zone around this price level stopped the uptrend.
Analyst Recto Capital said about this. identified The rejection point is close to high resistance in the $93,500 range. As a background, BTC has tried to break out of this zone many times but without success.
Specifically, BTC fell 13.86% from resistance after the November 16th rejection to its November 21st low of $80,620. A retest of the resistance level 7 days later yielded similar results. This time, BTC fell 10% to a low of $83,873 on December 1st before its recent recovery.
Shallow rejection signal strength
On the other hand, Rekt Capital Bitcoin As the rejection from the range increases, the pullback becomes progressively softer. The first time it was 13.86%, the second time it was 10%, but this time it was probably less.
BTC retested the $93,500 resistance on Wednesday, but the price stalled again around there. At the time of his analysis, the coin was trading at $91,299, down just 2.64% from resistance. At the time of writing, there were no significant changes, with a revised rate of 3.3% and assets of $90,355.
Market watchers see these shallow retracements as a sign of what's to come. resistance It's weakening. He expects this trend to continue until the crypto leader finally breaks through.
Possible scenarios and breakout targets
Strictly speaking, Rekt Capital said that Bitcoin could fall further and hit a low at the rising support trend line marked in blue on the attached chart. Tracing back to this support near $86,600 represents a 7.3% drop from resistance, which is still lower than the 10% drop from the previous rejection.
Bitcoin analysis | Recto Capital
He also predicted In a scenario where BTC retests the high resistance of the range from here, it will mark an even lower percentage. In both cases, he argued, declining rejection rates suggest a breakout is near.
On the other hand, an eventual breakout would send Bitcoin heading toward resistance levels near $98,000. Notably, this level coincides with the downtrend resistance trend line that started forming after the October 27 high of $116,400. Resisting this resistance will further fuel a further upward trend in BTC price.
