After witnessing an all-time high of over $99,000, Bitcoin’s recent price recovery reflects early signs of a short-term reaccumulation zone, following the historical breakout of 2020. Currently, BTC trades between $91,000 and $100,000, facing crucial support tests after dropping 5% in 7 days. The short of the 8.8% correction threshold is often linked to post-breakout pullbacks.
The market behavior mirrors 2020 when Bitcoin consolidated around $20,000 before rallying to record highs. Technical indicators like the Relative Strength Index (RSI) also suggest a bullish momentum.
In 2020, similar short-term drawdowns resulted in a surge beyond $60,000 later after gaining institutional inflows and investor optimism.
BTC’s Drop Sparks Fear In Investor
After today’s dip, investors and traders now fear a deeper correction. However, some analysts highlight Bitcoin’s resilience during similar patterns. According to Rekt Capital, a crypto analyst on X, If BTC maintains its current trajectory above key support levels, a push toward the $100,000 mark could be next.
Bitcoin’s recent recovery appears to have solidified the formation of a new early-stage, short-term series of Lower Highs
Bitcoin dipped -5% out of the possible -8.83% it would require to drop in for a post-breakout retest
At the moment, it is undecided whether BTC will… https://t.co/UrPPQ5M6mq pic.twitter.com/4mRIJ6Vufs
— Rekt Capital (@rektcapital) November 25, 2024
On the flip side, If the biggest cryptocurrency faces a crucial breach below $91,000, it might create a broader correction.
However, Macro indicators remain strong. It means this reaccumulation zone is building a launchpad for Bitcoin before it goes for another big rally. At the time of publication, BTC revolves around $96,249 with a marginal drop of 0.16% in the last 24 hours.
However, the chances of a major correction in the cryptocurrency are very low due to the growing participation of institutional investors. For instance, today, Michael Saylor announced his plan to purchase an additional $5.4 billion worth of Bitcoins, further increasing their holdings and reinforcing market confidence.
Also Read: ‘2010 Whale’ Could be Bitcoin Creator Satoshi Nakamoto: BTCparser Theory
Source: https://www.cryptonewsz.com/btc-reaccumulation-zone-is-91k-the-new-support/