Dead Cat Bounce? Bitcoin Holds Key Support and Climbs Above $89,000
Bitcoin rose above $89,000 on Binance on November 24, up more than 10% from its November 21 low, when the asset approached $80,000. This rebound has attracted the attention of leading market analysts, who are offering conflicting assessments of the cryptocurrency's future prospects.
BTC/USD 1-day chart. Source: Binance
Technical analysis: key support remains
Trader Daan Crypto Trades notes that Bitcoin has maintained an important support zone. He believes this level is critically important, as it represents the intersection of the horizontal zone from the March-April correction, the 0.382 Fibonacci retracement level of the entire move, and the 0.786 level from the April rally.
BTC/USD 1-Day Chart. Analysis by Daan Crypto Trades
“Anything lower would mean a fall to the April low, which would break the bullish structure of the weekly chart,” the analyst warns.
A Rekt Capital analyst is more optimistic: “The recovery that was in sight just a few days ago is now happening.”
BTC/USD 1-Week Chart. Analysis: Rekt Capital
Caution in the short term
Trader Roman points out the scale of the previous decline: Bitcoin fell $40,000 without a real rebound, so the current recovery amid oversold indicators shouldn't be surprising. However, he urges caution: “I wouldn't celebrate just yet. Nothing ever moves only up or only down.”
BTC/USD 1-Day Chart. Analysis by Roman
BitMEX founder Arthur Hayes notes improvements in dollar liquidity: the Federal Reserve will end quantitative easing on December 1, and American banks increased lending in November. He expects the price to fluctuate below $90,000, with the possibility of another drop, but believes the $80,000 level will hold. “I might start buying a little, but I'll hold the bulk of my holdings until the new year,” Hayes says.
Analogies to the 2020 collapse
Crypto trader and analyst Michaël van de Poppe draws parallels with the COVID-19 crash: “Yes, the current crash was severe. People expected a retest of the lows, but they also expected even lower levels during the COVID crash. But that didn't happen.”
In his opinion, the higher Bitcoin rises in the next one to two weeks, the lower the likelihood of a retest of the low. Van de Poppe notes that as the price rises, the fear of missing out returns on social media, and bears begin to rush to buy Bitcoin.
Bitcoin's quantile model creator, PlanC, is full of irony and optimism: “To be completely honest, I think it's a dead cat bounce. My target for such a jump is $1,000,000, and it will take 7-10 years.”
Source: cryptonews.net
