A closely followed crypto strategist says that Bitcoin (BTC) could find itself with a price tag similar to what it had in early 2021.
The pseudonymous analyst known as Rekt Capital tells his 291,000 Twitter subscribers that the top crypto asset by market cap is currently in the process of creating a new area of support near the $38,000 mark and if it fails, that region will become its new resistance level.
“Bitcoin is in the process of trying to turn the ~$38,000 area into support. If it fails to do that and ~$38,000 turns into resistance, BTC will confirm a return to the $28,000-$38,000 range which was home to consolidation in Q1 and Q2 in 2021.
Until then, retest in progress.”
The strategist notes that since 2020, BTC has only seen three consecutive red weekly candles only once before. However, this week could mark the second time such a phenomenon occurs if BTC continues its decline, and Rekt Capital says the odds don’t look good for the top crypto asset.
“Since late 2020, BTC has seen three consecutive red weekly candles only once before. Otherwise, BTC hasn’t declined for more than two red weekly candles in a row.
Will BTC print a third consecutive red weekly candle this week? Odds are not in BTC’s favor.”
The strategist says a weekly close above the $38,000 region would confirm a successful retest for Bitcoin.
BTC is exchanging hands at $38,398 at time of writing, a 13% decrease from its seven-day peak of $44,274.
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