As the BTC price volatility hit a 7-month low, Bitcoin “consolidated” its support of $58,000

Bitcoin (Bitcoin) By November 25, it hit a multi-day high of $58,300 overnight, and investors bet that the possibility of a further sharp drop in prices is reduced.

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

Data from Cointelegraph Markets Pro with Transaction view On Thursday, the BTC/USD range was above $57,000, making a higher low on the daily chart.

Trader and analyst Rekt Capital believes that this shows that support is “consolidated” at the current level, and therefore, hope that there is still a more convincing trend reversal.

“Bitcoin must have consolidated its support here, creating a long downward wick at the bottom of the black wedge structure and rebounding strongly,” he said Tell Twitter fans.

“In addition, compared to yesterday’s daily candlestick chart, today’s candlestick is forming a higher low.”

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

This sentiment was also shared by the crypto trading company QCP Capital, which summarized possible short-term results on Wednesday.

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

“We are betting that the market will consolidate rather than break below.”

As Cointelegraph Report, The selling pressure signals issued by the exchange this week were mixed, with large inflows and outflows indicating a highly active market.

despite this, volatility Maintained at the lowest level in more than half a year, consolidating relatively stable price conditions.

Bitcoin volatility chart.Source: Buy Bitcoin worldwide

Solana-led soft altcoin supports retesting

Among the top 10 cryptocurrencies by market capitalization, Binance Coin (Bitcoin) As a result, it became the only leader with an increase of 8% on a week-to-week basis.

related: The Bitcoin price indicator needs a “strong reaction” because the $56,000 BTC is starting to look “very cheap”

Other tokens remained flat or showed slight declines, led by Solana (SOL), which plunged nearly 7% to nearly $200 on the same day.

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

For Pentoshi, a trader and analyst, macro factors may lead to a clearer stagnation in the crypto bull market.

“The most lively end of the crypto bull market is double-digit inflation. People don’t understand why this is bearish on asset risk,” he commented on Twitter. String Initially started on November 16.

“Something that people cheer for at the expense of others may end the cycle.”

On Thursday, he reiterated the possibility of possible deflation in 2022.