Bitcoin (BTC) price has retested a crucial multi-year support trendline. The flagship coin dropped over 2% on Monday, to reach a range low of about $91,214 during the mid-North American session.
Bitcoin price has dropped around 20% in the past four weeks to retest its multi-month rising logarithmic trend. As CoinPedia recently reported, the BTC/USD pair was well-positioned to retest the support level around $92k to fill its multi-month unfilled CME gap.
Source: TradingView
In the weekly timeframe, Bitcoin’s Moving Average Convergence Divergence (MACD) has flashed a bear market. Notably, the weekly MACD has been registering rising bearish histograms as the MACD line teases crossing below the Zero line.
From a technical analysis standpoint, the Bitcoin price is well-positioned to rebound quickly in the coming weeks. After closing last week in a bearish candlestick, BTC has suffered more selling pressure fueled by leveraged traders.
A potential short-squeeze is likely to trigger a rubber-spring rebound fueled by high demand from whale investors. According to on-chain data analysis from CryptoQuant, long-term capital, led by Strategy that acquired nearly 9k BTC, has been aggressively accumulating amid the ongoing selloff.
Source: CryptoQuant
The long-term whales are potentially betting on expected capital rotation from gold to Bitcoin in the coming weeks. Moreover, the upcoming Fed’s Quantitative Easing (QE) in December is a bullish trigger for the wider crypto market.
On the other hand, BTC price is likely to continue in bearish sentiment if whales fail to absorb selling sprees by short-term traders. If Bitcoin price consistently closes below $91k in the coming days, the onset of its multi-month bear market will be inevitable.
Source: X
According to market data analysis from Glassnode, the Bitcoin price will likely fall below $80k if the bullish thesis fails to materialize in the coming days.
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