Technical Analysis for BTCUSD for 26th November 2021
BTC May Retest $60k, A Bitcoin 'Dead Cat Bounce'?
Past Performance of BTC
There is an encouraging recovery in the BTCUSDT daily chart.
Still, considering the low trading volumes accompanying the leg up, it is clear that sellers are still in a pole position from an Effort-versus-Results perspective.
Ideally, a close above $60k and November 18 might signal increasing upward momentum and strength.
However, this also must be with above-average trading volumes.
What to Expect of BTC
Technically, BTC is within a bear breakout pattern.
The inability of sellers to unwind losses and close above the consolidation at $60k points to weakness.
It is the case even with the series of higher highs relative to the lower BB.
A close above November 18 highs might draw demand, emboldening buyers targeting $64k.
Conversely, a shock drop below $55k in line with the November 16 bear bar could accelerate the sell-off, forcing BTC back below $53k.
Bitcoin Technical Analysis
This week's gains might be a dead cat bounce if BTC bulls fail to close above $60k.
Overall, BTC bulls are struggling from a volume perspective.
Low participation levels only slow down buyers and may reaffirm the downtrend if prices fail to edge higher today.
In that case, BTC may collapse back below $55k, heaping more pressure on the uptrend.
Risk-averse traders may wait for better entries above $60k or below $55k before aligning with the trend.
Resistance level to watch: $60k
Support level to watch: $55k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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