After raising hopes of a November mooning, the king coin has left the market to re-evaluate the Bitcoin rally so far.
While the week’s close was still above the $ 60,000 mark, the overall performance was disappointing. Especially since many have the impression that BTC will hit new heights towards the end of the fourth quarter.
After showing some subtle signs of recovery in the past two days, Bitcoin was eventually rejected twice for $ 60,000. At the time of writing, it was trading at $ 57,516.
So what does the price action represent?
While the larger market was baffled by the price decline mentioned above, it should be noted that the last price decline has lasted a little over twelve days. That’s not too long a time when you zoom out to see the bigger picture.
The supposed BTC low was -19% from the all-time high of $ 69,000. After hitting a five-week low of $ 55,650, BTC attempted a reversal on Saturday and Sunday, swung near the $ 60,000 zone, and ultimately failed. That rejection was seen from the $ 60k zone and again made $ 57,000 a major support level.
For now, however, Bitcoin would need a strong boost above the crucial $ 61,000 level in the short term to regain the level as support and continue its bullish course. Once BTC has established itself above the $ 60,000 psychological line, turning over $ 61,000 in support would be key to taking the next step.
Source: Pentosh1 Twitter
So far, November 2021 has delivered negative returns of -6.5% for HODLers, making November 2021 one of the three Novembles in Bitcoin history to not make any profits. Still, with continued currency outflows, could it be possible for BTC to make gains in the last week of November and repeat history?
This is what the metrics say …
BTC’s top indicators have pointed to a local low below $ 57,000 and that Bitcoin’s price may rebound. However, this cycle seems to be longer than the others, as many analysts have noted lately.
The Bitcoin Fear and Greed Index has fluctuated between Greed, Neutral and Fear for the past four days, indicating uncertainty in the market. Additionally, the short-term bearish sentiment still seems to plague the coin.
For example, open interest has declined as some notable long liquidations took place after November 18.
Source: CryptoQuant
That being said, the funding rate shows low positive values. This decline in the financing rate also made it clear how uncertain the market was about the further development of BTC. On the price front, Bitcoin encountered strong resistance as it retested the rising wedge structure as the $ 55,000, $ 50,000 and $ 47,000 levels acted as strong support.
However, in order for the top coin to bounce back it would have to form a two-bottom pattern at around $ 55,000, otherwise lower lows are expected in the near future.
All in all, with high volatility and an uncertain price trend, you can’t say anything with certainty and BTC could surprise everyone.
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