The pseudonymous crypto trader Rekt Capital tells their 332,200 Twitter followers that Bitcoin is on the verge of confirming a bull market after rallying this week.
However, they warn it could take a few months to break key bear market trend lines and does not rule out a dip in price before then.
“BTC is attempting to break beyond the multi-month downtrend line on the weekly time frame. Weekly close above the trend line likely confirms the breakout. But most important trend line to break to confirm a new bull market is the macro downtrend on the monthly time frame.
BTC is in a transitional phase. It’s bordering on the bear market ending and new bull market beginning. This phase could take a few months and new lows can’t be entirely ruled out just yet. But it’s great to see there is finally light at the end of the tunnel.”
The trader also looks at Bitcoin’s Relative Strength Index (RSI), a measure of asset momentum, as an indicator that the king crypto is signaling bullishness. The analyst says that the RSI needs to climb into the previous bear market RSI bottom range to confirm the upward trend.
“Monthly BTC RSI is also breaking out from its downtrending channel. To confirm the bullish trend, BTC RSI needs to reclaim the previous bear market bottom area (green) as support in the interim, until it is reclaimed, it could technically act as resistance.”
Rekt Capital also says another market indicator to watch is whether Bitcoin can cross the psychological price level of $20,000, which acted as support for much of last year. They say $20,000 could act as resistance during the present rally. At time of writing, Bitcoin is changing hands at $19,287.
“BTC is slowly but surely approaching the psychological level of $20,000 $20,000 acted as multi-month support for a lot of 2022 and soon may act as resistance. Macro-wise, BTC is inside the $13,900-$19,500 Monthly range (blue-blue).”
Shifting focus to Fetch.ai, the crypto trader says the decentralized machine learning system blockchain project is positioned to confirm a higher support level at $0.262 after surging along with the broader crypto markets rally.
“FET follows the green path and finally reaches the blue resistance. Now just waiting for confirmation whether FET can flip the blue level into support or if price needs a healthy dip into red next.”
At time of writing, Fetch.ai is valued at $0.245.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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