Bitcoin is signaling that it’s ready to revive itself from a multi-month downtrend and form the beginnings of a fresh bull run, according to a closely followed crypto trader and analyst.
The pseudonymous trader known as Rekt Capital tells his 292,000 followers that Bitcoin is no longer in a downtrend but in the middle of a bounce from a strong macro support level.
“BTC indeed retraces back to the Higher Low and is showing early signs of rebounding from there.”
The trader points out how in the past, BTC has had multiple ugly weekly closes below the $40,000 level before bouncing back up just as it looks like a new downtrend has begun.
“Just like last time, BTC Weekly Closed below black (~$43100) & retraced to red (~$38000) for a retest
BTC is now trying to retest red ($38K) which is confluent with the green Higher Low
Successful retest here would enable a rally across the $38K-$43.1K range.”
Rekt Capital says that in order for his thesis to remain valid, Bitcoin faces the key task of holding the $38,000 mark. If that critical level holds as support, the trader says a rally to the next major area of confluence at around $51,000 is in play.
If all goes well, the analyst says that Bitcoin may be on track to do a repeat of last week’s rally where it shot up nearly 20% to $45,000.
“BTC has revisited the green Higher Low and is retesting it as support
Successful retest here and BTC could actually repeat last week’s move
BTC would need to break the green dashed diagonal to enable a revisit of the ~$43100 level.”
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