A prominent crypto trader says that leading crypto asset Bitcoin (BTC) can still retain its bullish momentum despite its latest dip.
Pseudonymous strategist Rekt Capital tells his 292,000 Twitter followers that the inability of Bitcoin bulls to keep BTC above $43,000 puts the leading cryptocurrency in a position to revisit its diagonal support on the weekly timeframe.
“The last time BTC performed a weekly close below the ~$43,100 level, the price rejected to the ~$38,000 area for a retest. Upon weekly close ~$43,100, BTC may possibly be positioning itself for a similar price trajectory.”
Bitcoin is exchanging hands at $38,960 at time of writing, a 7.5% decrease on the day and a 13% drop from its seven-day peak of $44,790.
The analyst says that Bitcoin may now be trading inside a symmetrical triangle, which eventually leads to wild price swings once the pattern reaches its narrowest point.
“If BTC performs a weekly close below [the ~$40,700 level] to confirm it as resistance, then we may see continued consolidation into the apex of [the] triangle. In which case, this will precede price compression, and price compression precedes volatility.”
Rekt Capital also says that Bitcoin can continue to pull back yet still be bullish as long as it stays above a crucial area.
“BTC could dip to as low as ~$38,000 and still maintain a bullish outlook going forward.”
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