Parabolic

Bitcoin

Rekt (rektarb.xyz)

Daily

Rekt

Bitcoin price has entered a decisive phase of its bull market, currently trading at $95,300 after establishing strong support at $91,000.
The cryptocurrency’s recent price action has carved out distinct trading ranges, with the latest 24-hour window spanning from $94,497.60 to $97,338.64 and the weekly range extending from $90,911.14 to $98,658.93. The asset remains within striking distance of its November 22 all-time high of $99,645.39.
<h2 class="wp-block-heading" id="h-bitcoin-successfully-retests-91-000-as-support">Bitcoin successfully retests $91,000 as support</h2>
According to analyst&nbsp;<a href="https://newsletter.rektcapital.co/bitcoin-and-altcoins-planning-the-next-few-weeks/" rel="noopener noreferrer nofollow">Rekt Capital</a>, Bitcoin price has successfully retested the $91,000 range low as support. This confirmed the above level as a foundation for the newly established $91,000-$100,000 trading range.
This validation comes after breaking beyond the lower high resistance, though recent price action indicates a critical test approaching at the bull flag bottom of approximately $96,400.
The current market structure shows increasing complexity in technical indicators. The Relative Strength Index (RSI) displays a series of lower highs on the daily timeframe, suggesting mounting weakness in price action.
However, Rekt Capital notes that this RSI downtrend and cooling period might actually set the stage for another leg up if the indicator can break its pattern of lower highs.
<h2 class="wp-block-heading" id="h-96-400-stays-as-an-important-level-for-bitcoin-price">$96,400 stays as an important level for Bitcoin Price</h2>
The bull flag pattern currently in formation requires special attention, with $96,400 serving as a pivotal level. A daily close above this threshold would confirm the recent retest as a mere downside wick, potentially realigning Bitcoin with the bull flag consolidation. Failure to reclaim this level could see it transform into resistance, threatening the recent lower high retest’s validity.
The analyst emphasizes that Bitcoin is only in the second month of its price discovery phase, suggesting significant upward potential remains unexplored. The cryptocurrency has demonstrated impressive gains across multiple timeframes, with a 2.1% weekly increase and a substantial 39.2% monthly appreciation, despite recent consolidation.
<h2 class="wp-block-heading" id="h-traders-should-brace-for-volatility">Traders should brace for Volatility</h2>
The timing within the cycle becomes particularly relevant as Bitcoin enters its fifth week of the parabolic phase. Historical data suggests that weeks 6-8 typically bring significant corrections during price discovery periods.
This pattern indicates that while the current uptrend may continue in the near term, traders should prepare for potential volatility in the coming weeks.
Market participants should focus on three critical aspects in the coming days:
<ol class="wp-block-list">
 <li>Daily closes relative to the lower high price action</li>
 <li>The bull flag formation around $96,400</li>
 <li>RSI behavior concerning established lower highs</li>
</ol>
The mix of these factors will likely determine Bitcoin’s short-term trajectory as it navigates this crucial phase. While the potential for a correction looms, the asset’s position early in its cycle suggests the overall trend remains bullish.
The current price action demonstrates Bitcoin’s resilience, maintaining strong support above $91,000 while challenging resistance near its all-time high. The combination of technical strength with early cycle positioning suggests upside potential, even as historical patterns warn of an approaching correction phase.
The post <a href="https://www.thecoinrepublic.com/2024/12/03/bitcoin-price-in-parabolic-mode-analyst-explains-why-we-are-still-early/" rel="noopener noreferrer nofollow">Bitcoin Price in Parabolic Mode: Analyst Explains Why We Are Still Early</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.

Bitcoin Price in Parabolic Mode: Analyst Explains Why We Are Still Early

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