There are some looming threats for Bitcoin. One is the continued strength of the U.S. dollar index. Meanwhile, Thanksgiving weekend could result in dramatically lower trading volumes.
Bitcoin is stagnating as a number of smaller cryptocurrencies start to show strength.
While BTC is down 0.43% over the past 24 hours, ETH has raced up by 2.65%.
Other notable performers include Crypto.com Coin, which has risen by 18% over the same timeframe. With a current price of $0.94, CRO has almost doubled in value in the past week.
According to Michaël van de Poppe's crypto consultancy Eight Global, BTC is getting primed for a bullish breakout.
On Twitter, the company said a pennant has formed where lower highs and higher lows are made — and such activity is "typically followed by a further continuation to the upside."
There are some looming threats for Bitcoin. One is the continued strength of the U.S. dollar index. Meanwhile, Thanksgiving weekend could result in dramatically lower trading volumes for the next few days. On top of all this, we're also approaching the all-important monthly close.
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Big Bounceback Ahead?
A number of influencers on Crypto Twitter are also arguing that Bitcoin looks "seriously cheap" at $56,000.
Overall, the world's biggest cryptocurrency is starting to stabilize — and although the current correction has rumbled on for a couple of weeks, BTC has failed to dip below $55,500.
This indicates that there is strong support around this level, and it could pose a big challenge to bears who hope to push prices lower.
Aside from the U.S. dollar index, some analysts have linked BTC's tepid performance to the looming prospect of payouts to victims of the Mt. Gox hack.
There are fears that many of these victims may choose to cash out as soon as they receive compensation.
However, these payouts aren't expected to take place until next year.
