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

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

Bitcoin (BTC) hit multi-day highs of $58,300 in a single day into Nov. 25 with buyers betting on the lowered chance of an additional main price dip.

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

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

This, trader and analyst Rekt Capital believes, shows support “solidifying” at current levels, with hope, therefore, remaining of a more convincing trend reversal.

“Bitcoin has certainly solidified its support here, producing a long downside wick into the bottom of the black wedging structure and rebounding strongly,” he told Twitter followers.

“Also, today’s candlestick is forming a Higher Low relative to yesterday’s Daily candle.”

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

The mood was shared by crypto trading firm QCP Capital, which, on Wednesday, summarized the likely short-term outcomes.

“So far, the selling pressure has effectively capped every rally. The question is whether it will lead to a downside break,” it wrote in a market update to Telegram channel subscribers.

“We are betting that the market will consolidate instead of breaking lower.”

As Cointelegraph reported, mixed signals played out from exchanges over selling pressure this week, with large inflows and outflows marking a highly active market.

Nonetheless, volatility remains at its lowest in over half a year, reinforcing relatively stable price conditions.

Bitcoin volatility chart. Source: Buy Bitcoin Worldwide

Limp altcoins led by Solana support retest

Out of the top 10 cryptocurrencies by market capitalization, Binance Coin (BNB) thus became the sole standout, up 8% week over week.

Related: Bitcoin price metric demands ‘strong reaction’ as $56K BTC begins to look ‘seriously cheap’

Other tokens have been flat or noticed minor losses, led by Solana (SOL), which dove almost 7% on the day to close $200.

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

For fellow dealer and analyst Pentoshi, macro components might but trigger a extra definitive stalling of the crypto bull run.

“The most hilarious ending to a crypto bull market would be double digit inflation and people not understanding why that can be bearish for risk on assets,“ he commented in a Twitter thread originally begun on Nov. 16.

“The very thing people cheering on at the expense of others Can be the very thing that ends this cycle.”

On Thursday, he reiterated the potential for a deflationary spell to emerge in 2022.