• Bitcoin (BTC) has been consolidating below $37,000, experiencing a dip but maintaining support above $36,000.
• Despite the recent consolidation, some analysts predict a continued price rally for Bitcoin, anticipating a potential return to its all-time high of $69,000.

The Bitcoin (BTC) price has been consolidating under $37,000 for a while after hitting a new 2023 high last week with the excitement around spot Bitcoin ETF approval. As of press time, BTC is trading 1.45 percent down at a price of $36,432 with a market cap of $711 billion.

The Bitcoin price experienced a dip below the $36,500 level but maintained its position above $36,000, forming a low near $36,183 before initiating an upward movement. The current trading scenario includes a breach above the $36,450 level, with the price above the 23.6 percent Fibonacci retracement level of the recent downtrend from the $37,423 high to the $36,183 low.

Bitcoin is presently trading below $37,000 and the 100-hourly Simple Moving Average. Additionally, a significant bearish trend line is shaping up, presenting resistance around $36,600 on the BTC/USD hourly chart.

On the positive side, immediate resistance is noted around the $36,600 level, followed by a key hurdle near $36,800 or the 50 percent Fibonacci retracement level from the recent decline. The primary resistance is positioned at $37,000, and surpassing this level could lead to a potential acceleration towards $37,500. Further gains might propel BTC to test the $38,000 mark, triggering bullish momentum with the potential to rally toward $40,000.

Additionally, some analysts predict Bitcoin’s meteoric price rally to continue all the way to its all-time high of $69,000 ahead of the Bitcoin ETF approval. Some popular market traders also believe that the approval of the Bitcoin ETF could be a sell-the-news event.

Analyzing the Downside Potential for Bitcoin

Should Bitcoin face resistance and fail to surpass the $36,800 zone, a continuation of downward movement is plausible. Immediate support awaits at the $36,180 level, with the subsequent major support situated around $36,000.

A breach below $36,000 introduces the potential for further downsides, and in such a scenario, the price might gravitate toward the crucial support at $35,500 in the short term.

Popular crypto analyst Ali Martinez noted that while Bitcoin has currently established stable support around $36,400, a breakdown below this level could expose the cryptocurrency to critical demand zones at $34,300 and $30,200.

At the same time, the transaction fee on the Bitcoin network has also soared to the highest levels since the frenzy surrounding Bitcoin ordinals earlier this year in May 2024.

Analyst Will Clemente explains that it’s not something to worry about but rather a confidence-boosting signal. He added: “Can’t stand when people say Bitcoin’s fees are “too high”. Sure, marginally higher fees aren’t ideal when conducting a tx, but as a Bitcoin holder, higher fees mean greater incentive to mine, and ultimately more security for the network that you’re holding your wealth in”.

On the other hand, the activity for Bitcoin ordinals has also surged. On November 12, the total number of minted Bitcoin Ordinals Inscriptions achieved a record high, reaching 505,000, primarily driven by BRC-20. This surge has propelled the overall count of Bitcoin Inscriptions beyond 40 million. Notably, Atomical minted over 28,000 on the same day, contributing 2.63 BTC in fees. This marks the second-highest minting activity since the protocol’s inception on September 23, as per data from Dune Analytics.