This is a technical analysis post by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
Bitcoins The late-year attempt to regain balance ran into a glass ceiling on Monday, forcing prices back below $88,000.
This ceiling is defined by a descending trendline drawn from October’s record high above $126,000, connecting the tops of subsequent shallow recoveries – notably the $116,400 high.
That trendline knocked back attempts to establish a foothold above $90,000 on Monday, reinforcing the “step-down” pattern that has plagued the major cryptocurrency throughout the fourth quarter. By failing to clear this hurdle, BTC has posted another “lower high”, signaling a resurgence of sellers near the resistance line and stalling the momentum needed to challenge the six-figure mark.
Therefore, the immediate outlook remains bearish as long as prices remain below the trend line. The latest rejection shifts focus towards the $84,000-$84,500 support zone, followed by the November low near $80,000.
To revive the bullish outlook, BTC needs to overcome the trendline resistance. Such a breakout, especially against the backdrop of a sliding dollar index, could accelerate gains toward the $100,000 mark.
