thecryptobasic.com
Bitcoin appears to be weakening a crucial resistance mark, signaling that a momentous breakout to higher price levels is not far-fetched.
Bitcoin trades near $91,000, down less than 2% over the past 24 hours. If current momentum sustains, BTC would post its second consecutive daily red candlestick, having corrected by 1.44% on Thursday.
Resistance Impedes Bitcoin Growth Again
Notably, Bitcoin faced a rejection from a familiar territory on Wednesday. After reaching a high of $93,460 on December 3, the supply zone around this price level halted its uptrend.
Speaking on this, analyst Rekt Capital identified the rejection point as close to the range high resistance of $93,500. For context, BTC has attempted to break above this zone on multiple occasions, without succeeding.
Specifically, BTC fell by 13.86% from the resistance after a rejection on November 16, dropping to its low of $80,620 on November 21. A retest of the resistance seven days later led to a similar outcome. This time, BTC fell 10% to a low of $83,873 on December 1 before the recent recovery.
Shallow Rejection Signals Strength
Meanwhile, Rekt Capital highlighted that each Bitcoin rejection from the range high resistance has led to an incrementally softer pullback. It was 13.86% the first time, 10% the second time, and possibly less this time.
BTC retested the $93,500 resistance on Wednesday, but prices stalled again around that area. At the time of his analysis, the coin traded at $91,299, down only 2.64% from the resistance. At press time, nothing much has changed, with the correction now at 3.3% and the asset at $90,355.
The market watcher views these shallower retracements as a sign that the resistance is weakening. He expects this trend to continue until the crypto leader finally breaks out.
Possible Scenario and Breakout Target
Technically, Rekt Capital stated that Bitcoin could drop further to make a higher low at an ascending support trendline marked blue in his accompanying chart. Retracing to this support around $86,600 would mark a 7.3% drop from the resistance, which is still lower than the 10% pullback from the previous rejection.
He also predicted a scenario in which BTC retests the range high resistance from here, which would mark an even lower percentage. In each case, he insisted that the declining rejection rate suggests a breakout is on the horizon.
Meanwhile, an eventual breakout sets Bitcoin on the path to the subsequent resistance level around $98,000. Notably, this level aligns with the descending resistance trendline, which started forming after October 27’s high of $116,400. Defying this resistance would further catalyze more BTC price uptrends.