The sudden decline of the Bitcoin has brought the asset to the critical support that is triggering new readings of market analysts who anticipate that the cryptocurrency will consolidate before any significant directional shift. Trader Michaël van de Poppe indicates that the current price structure indicates that BTC will probably stabilize at its current price with a possible retest of the $85.5K range again to seal the CME gap before it makes an attempt to climb higher.
Analyst Expects Bitcoin to Hold Support Range
Van de Poppe expressed his perspective together with a chart that indicated some of the important technical areas. Bitcoin has been in a multi-week decline and this is coming off its recent highs and depreciating against a clearly defined support area. The chart indicates the price heading towards the zone of $82.7K to $83K, which has been a support zone where the buyers have traditionally been present in corrective phases.
The analyst noted that he would prefer Bitcoin to test the $85.5K mark where there is an open gap on the CME. These gaps tend to be re-traded over and over as they are viewed as magnet zones that the price tends to enter prior to taking up new momentum.
Technical Structure Points Toward Consolidation
The current form of Bitcoin is an indication of a sharp correction of the highs in November; the downward trend constitutes a clear downward channel. Another notable point of the chart is that there is a secondary support which van de Poppe points out as being at around $74.5K in case the present support area is lost.
Nevertheless, according to his analysis, the more likely scenario is a stabilization pattern, and BTC will initially consolidate to the side and then proceed with the next major step.
Potential Upside Target: 20-Day Moving Average at $95K
Although the situation has been corrected recently, van de Poppe is still rather bullish in the short term. Once the CME gap is completed, he reckons that Bitcoin would send back to its 20-day moving average, which is at around $95K.
That threshold is the uppermost level of upside and could be a great challenge of market force. Going back and taking the 20-day MA would be a great indicator of a rebound in buyer confidence and would potentially turn the tide back to a new rally.
Market Watches Critical Levels
As the volatility increases and the macroeconomic uncertainty continues to take a toll on risk crypto assets, traders are paying close attention to the behavior of Bitcoin on the surrounding of these critical price points. The question of whether BTC will recover on the present zone or fall will be the most significant factor to consider in sentiment going into December.
In the meantime, the market, according to analysts, is still in a healthy corrective phase and that the next decisive action will occur as soon as the interaction of the CME gap of 85.5K is reached.
