Bitcoin traders are sensing the possibility of a support retest, with speculation about a deeper price correction gaining traction. Despite failing to break out beyond 18-month highs, Bitcoin held firm around $36,000 after the Nov. 16 Wall Street opening.
Market participants expressed mixed sentiments, with some hoping for a fresh correction to retest lower levels. Monitoring resource Material Indicators suggested a desire to see the latest rally complete a round trip back to $35,000, or ideally, a retest of $33,000. The BTC/USDT order book displayed support building at $35,000.
Material Indicators co-founder Keith Alan highlighted the significance of Bitcoin’s rising 21-day simple moving average (SMA) as a support level, noting that BTC continued to struggle for the range above $36.5k.
Popular trader Daan Crypto Trades identified $35,700 and $38,000 as key downside and upside levels to monitor, respectively. On the other hand, trader Gaah from on-chain analytics platform CryptoQuant cautioned that a more significant correction could bring the market closer to $30,000, emphasizing the resistance at $37,000.
While some traders remained cautious, Credible Crypto, known for bullish market takes, pointed out a potential upside for BTC. This optimism stemmed from a notable pullback among altcoins, which performed less favorably compared to Bitcoin on the given day.
Altcoins such as Ethereum (ETH), XRP, and Solana (SOL) experienced declines of 3.8%, 5%, and nearly 11%, respectively. Credible Crypto, observing the trend, suggested a potential for Bitcoin to resume its upward trajectory.
Bitcoin’s crypto market cap dominance reached one-week highs of 52.82%, indicating a prevailing strength in BTC compared to alternative cryptocurrencies. The evolving dynamics between Bitcoin’s price action and the broader crypto market will be closely monitored by traders as they assess potential support levels and anticipate market movements.
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