Bitcoin ‘solidifies’ support at $58K as BTC price volatility hits 7-month low

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Bitcoin (BTC) hit multi-day highs of $ 58,300 on the night of November 25, with investors betting on a reduced likelihood of another big drop in prices.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingView

Data from Cointelegraph Markets Pro and TradingView showed BTC / USD to rise above $ 57,000 on Thursday, printing a lower low on the daily chart.

This, according to trader and analyst Rekt Capital, shows that support is “solidifying” at current levels, leaving hope for a more convincing trend reversal.

“Bitcoin has certainly solidified its support here, producing a long downward wick at the bottom of the black wedge structure and rebounding strongly,” he said. Recount Twitter followers.

“Additionally, today’s candlestick forms a lower higher than yesterday’s daily candle.”

1-day BTC / USD annotated candle chart (Coinbase). Source: Rekt Capital / Twitter

The mood was shared by crypto trading firm QCP Capital, which on Wednesday summed up the likely near-term results.

“So far, the selling pressure has effectively leveled off every rally. The question is whether that will lead to a downside breakout,” he wrote in a market update to the channel’s subscribers. Telegram.

“We bet the market will consolidate instead of breaking lower.”

As Cointelegraph reported, there were mixed signals from trading on selling pressure this week, with large entries and exits marking a very active market.

Nonetheless, volatility remains at its lowest for more than a half, reinforcing relatively stable pricing conditions.

Bitcoin volatility chart. Source: Buy Bitcoin Worldwide

Soft Altcoins Led By Solana’s New Support Test

Of the top ten cryptocurrencies by market capitalization, Binance Coin (BNB) has thus become the only one to stand out, up 8% week after week.

Related: Bitcoin Price Metric Demands ‘Strong Reaction’ As $ 56,000 BTC Begins To Look ‘Seriously Cheap’

Other tokens remained stable or suffered minor losses, led by Solana (SOL) which plunged nearly 7% on the day to nearly $ 200.

1 hour SOL / USD candle chart (FTX). Source: TradingView

For his fellow trader and analyst Pentoshi, macro factors could yet cause a more definitive stall in the crypto bull run.

“The most hilarious end to a crypto bull market would be double digit inflation and people wouldn’t understand why that can be bearish for asset risk,” he commented in a Twitter feed originally started on November 16.

“The very thing that people encourage at the expense of others can be the very thing that ends this cycle.”

On Thursday, he reiterated the potential for a deflationary period in 2022.