- Bitcoin faces critical support test after rejection at key resistance level, signaling potential consolidation.
- Hidden bullish divergence suggests Bitcoin may bounce back, but key resistance and support levels will decide.
- Altcoin season heats up as Ethereum breaks key resistance, signaling strong growth in the broader crypto market.
Crypto Rover has explained that Bitcoin has been rejected at a major resistance level that he had been anticipating. In a recent YouTube video Rover highlighted that this rejection indicates that BTC has now reached a critical stage where the cryptocurrency would likely find its footing before it begins to move again.
The recent performance of the BTC has indicated a bearish divergence which is accompanied by a lower low on the Relative Strength Index (RSI). However, the market changed as Bitcoin painted a hidden bullish divergence that screamed of buying pressure. This shift has enabled BTC to rebound from critical support levels that Rover had previously suggested are important.
Source: Chart by CryptoRover
Bitcoin Support vs Resistance
The short term direction of cryptocurrency is therefore dependent on if the price can hold the support or break through resistance. In the case if the BTC price rises and breaks through the current resistance level, the following target may bring the price to the range of $107,000 – $118,000. On the flip side, if we find a bearish break below the support zone it could lead to a price drop towards $84,000-$85,000. These levels can be seen as opportunities for the traders to enter the market in order to get the benefits from possible price changes.
Source: Chart by CryptoRover
However, the rest of the cryptocurrency market is also entering the so-called “altcoin season” with Ethereum in front. Ethereum recently breached the down trending resistance line and almost immediately rose above $3,600 signifying a clear uptrend. For Ethereum the next target could be as high as $5,000 which is quite a way above the current levels. This has led to people making predictions on further rises in the altcoin market which is slowly being noticed.
Liquidity in the market of Bitcoin is also important here. There has been a high concentration of short liquidations around the $99,000 to $100,000 range and as such, BTC could target these zones before shifting to the next direction. It could take BTC to the upside in the short term as the market participants start to respond to these changes in liquidity. As of writing BTC is trading at $94,930 showing a 2.20% decline over the past day.
Source: TradingView
Bitcoin ETF Momentum Grows
Also, flows into Bitcoin related ETFs are rising with firms like Fidelity and Bitwise investing in them which brings the sentiment in the market up. However, November is normally a month of boredom, however, many are hopeful that Bitcoin will not remain within a range for much longer. The market might awaken as we head towards December and this may lead to the next big move.
The current range bound movement of Bitcoin could be pointing towards a break out in the coming forth week. Given that the dominance of Bitcoin is decreasing, altcoins are expected to keep on rising. Investors should keep their eyes on the developments as the alt season is now in full swing, as expected.
