This, trader and analyst Rekt Capital believes, shows support “solidifying” at current levels, with hope therefore remaining of a more convincing trend reversal.
“Also, today’s candlestick is forming a Higher Low relative to yesterday’s Daily candle.”
The mood was shared by crypto trading firm QCP Capital, which on Wednesday summarized the likely short-term outcomes.
“So far, the selling pressure has effectively capped every rally. The question is whether it will lead to a downside break,” it wrote in a market update to Telegram channel subscribers.
“We are betting that the market will consolidate instead of breaking lower.”
As Cointelegraph reported, mixed signals played out from exchanges over selling pressure this week, with large inflows and outflows marking a highly active market.
Nonetheless, volatility remains at its lowest in over half a year, reinforcing relatively stable price conditions.
Limp altcoins led by Solana support retest
Other tokens were flat or saw minor losses, led by Solana (SOL) which dived nearly 7% on the day to near $200.
For fellow trader and analyst Pentoshi, macro factors could yet cause a more definitive stalling of the crypto bull run.
“The most hilarious ending to a crypto bull market would be double digit inflation and people not understanding why that can be bearish for risk on assets,” he commented in a Twitter thread originally begun on Nov. 16.
“The very thing people cheering on at the expense of others Can be the very thing that ends this cycle.”
On Thursday, he reiterated the potential for a deflationary spell to emerge in 2022.