Bitcoin has demand at 'low' prices and may rise again.

Source: Exame Original Title: Bitcoin has demand at 'low' prices and may rise again Original Link: This Monday, the 1st, bitcoin starts the week in the range of $85-86 thousand after signaling a strong recovery last week. Despite this, experts remain optimistic that the world's largest cryptocurrency could rise again in December.

Currently, bitcoin is priced at $85,763, down 6.5% in the last 24 hours, according to data from CoinMarketCap. However, in the last seven days, the accumulated drop is only 1%.

“After the price of bitcoin reached a high of $93,092 last Friday, the 28th, the leading cryptocurrency started the month of December with a decline of 8.04% so far, hitting a low of $85,604,” said Ana de Mattos, analyst and trader partner of a trading platform.

“During the drop, a high financial volume entered trying to halt the downward movement; therefore, if a correction of the drop occurs, the resistances are at the price ranges of $91.4 thousand and $94.5 thousand. The short and medium-term supports are at the liquidity regions of $84.1 thousand and $79 thousand,” added the technical analyst.

Beginning of December for bitcoin

“The crypto market begins December with a sigh of relief, after the deep declines of last week. Bitcoin recovers the area of $86,000, signaling that the extreme liquidation may have hit the short-term bottom. Although the sentiment of fear persists, the recovery above $85,000 shows that institutional demand at low levels is absorbing the shock,” said Guilherme Prado, country manager of a trading platform in Brazil.

“The recent recovery is seen more as a technical rebound post-capitulation than a structural reversal, due to the persistence of headwinds. Global liquidity issues continue to dominate. The Fed's interest rate cut has not had the desired effect on the risk market, and the market is now pricing in a high probability of the Fed maintaining monetary restriction for a longer period. This is the main factor keeping the market in decline at low levels,” he added.

Bitcoin price forecast

“The sustained rise of gold continues to reflect risk aversion. Bitcoin, however, shows that long-term buying demand at low levels is strong. The most realistic outlook for December is consolidation in the range of $85,000 - $90,000, as investors look for a new equilibrium point,” said Guilherme Prado.

“Looking at the technical side, bitcoin is in a recovery movement from an extreme oversold zone, struggling to retake the $90,000 range. Bitcoin is trading well below the 100 and 200-day moving averages on the daily chart, maintaining a bearish bias in the medium term. The recovery from $81,500 to $86,000 is a sign of buying strength at low levels, but not a trend reversal. In the short term, bitcoin should try to consolidate between $85,000 and $90,000,” concluded the expert.