Bitcoin was sliding into a consolidation phase as markets adopted a risk-off sentiment ahead of the $23.6 billion options expiry. The timing was after a long sell-off price action that extended through both October and November. With uncertainty still in the air, participants showed a preference for caution.
According to 10x Research, there is a possibility that Bitcoin is developing a positive recovery trend. The pattern could be interpreted as an escape movement, signaling the release of the pressure to sell. In case the structure is intact, the market has the potential to start a recovery within a few weeks. If the trend holds, Bitcoin could target the $110,000 zone over the long term.
Bitcoin’s present structure began forming at the start of October. A sudden sell-off on October 10 pushed prices down from levels close to $98,000. Continued outflows from spot Bitcoin ETFs followed, with nearly $903 million exiting and adding to broader liquidity constraints.
Capital Rotation Limits Upside After Prolonged Weakness
The capital outflow put Bitcoin in prolonged weakness. Despite the downward price movements, buyers did not rush to intervene. Many traders were risk averse, and the indecisiveness sustained the downswing longer than anticipated.
The situation has since improved due to technical developments. Bitcoin has just shot above a declining pattern line for years. This move was a sign that the bearish momentum had been lost. The support level of $85,000 stabilized the sentiment.
Source: 10x Research
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By the end of November, selling momentum began to slow. Most short-term traders had exited their positions. Despite this shift, Bitcoin failed to generate a sharp rebound. However, Investor interest has shifted toward traditional assets such as gold and silver.
Bitcoin Stalls Near Key Levels as Market Conviction Weakens
However, the situation hasn’t consistently improved. The cryptocurrency has attempted to pass the highs of $92,000 a couple of times. The follow-through on all the attempts was poor due to low trading volume. It has low participation and is affected at the end of the year by a seasonal decline.
From a technical perspective, a significant level of $91,000 is now being mentioned by analysts. This level’s long-term and significant shift could potentially signal the end of consolidation. The next resistance is closer to the figure of $94,700. Filling up that zone would alter the psychology of the market.
Source: X
As of press time, BTC is currently trading at $88,799, representing an increase of 1.29% in the last 24 hours, with a market cap of $1.76 trillion. The trading volume is showing a strong bullish surge, up by 100.51%, and it is currently standing at $39.42 billion.
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