Bitcoin Aims for Breakout as Key Resistance Weakens

Summary:
Bitcoin is nearing a critical resistance level that is starting to weaken, which could signify an upcoming breakout to higher price levels. Currently trading around $91,000, the cryptocurrency has faced slight declines recently but shows signs of potential strength amid shallow pullbacks from resistance.

Key Takeaways

Bitcoin is currently trading near $91,000, down less than 2% over the past 24 hours.
The leading cryptocurrency has faced rejections around the $93,500 resistance level multiple times.
Analysts note that the pullbacks from resistance are becoming less severe, suggesting a weakening resistance.
There’s a possibility of Bitcoin retesting the $86,600 support, which would still indicate a lesser drop than before.
A successful breakout could lead Bitcoin to the next resistance level around $98,000.

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Resistance Continues to Challenge Bitcoin's Growth

Bitcoin has struggled against a well-known resistance level, with a significant rejection occurring on Wednesday. After a peak of $93,460 on December 3, the price trend was halted by the supply zone near this level.

Analyst Rekt Capital pointed out that the rejection occurred close to the range high resistance of $93,500. Historically, Bitcoin has attempted to exceed this zone multiple times but has faced failure each time. For instance, following a rejection on November 16, BTC dropped by 13.86%, hitting a low of $80,620 by November 21. A reattempt at breaking this resistance a week later resulted in a 10% decrease to a low of $83,873 by December 1.

Indications of Weakening Resistance

Rekt Capital observes that with each rejection from the range high resistance, the subsequent pullbacks have been less severe. Initially, the retracement was 13.86%, then it became 10%, and current trends suggest it may be even less this time.

During the recent retest of the $93,500 resistance on Wednesday, Bitcoin's price again paused near this mark, trading at approximately $91,299—only 2.64% below the resistance. As of now, the correction stands at about 3.3%, with Bitcoin at $90,355. This trend of decreasing pullbacks is viewed as a strong signal that the resistance is losing its strength, leading analysts to predict that a breakout may soon occur.

Potential Scenarios and Breakout Targets

Rekt Capital posits that Bitcoin might dip further to form a higher low along an ascending support trendline marked in his analysis. This potential drop to around $86,600 would represent a 7.3% decline from the resistance level, which is still a smaller retracement than previous occurrences.

Bitcoin Analysis/Rekt Capital

He also explored the scenario where BTC might once again test the range high resistance, which would likely result in an even smaller percentage drop than before. Rekt Capital emphasizes that the downward trend in rejection percentages indicates that a breakout is imminent.

If Bitcoin successfully breaks out, it could target the next significant resistance level around $98,000. This level correlates with a descending resistance trendline that has developed since the high of $116,400 on October 27. Overcoming this barrier could lead to further gains in Bitcoin’s price.

Disclaimer: This article is intended for informational purposes only and should not be regarded as financial advice. The opinions expressed may reflect the author's views and do not necessarily represent The Crypto Basic's perspective. Readers are encouraged to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.