A closely followed crypto analyst says major technical signals are pointing towards a big breakout for Bitcoin (BTC).
Pseudonymous analyst Rekt tells his 340,000 Twitter followers that BTC’s monthly candle has broken through a major resistance.
According to Rekt, Bitcoin’s recent breakout looks similar to other moves in the past that historically preceded longer-term rallies.
“Notice how BTC macro downtrend breakout candles have historically had upside wicks form (yellow circles).
This current monthly breakout candle looks no different.”
The popular analyst says the current monthly candle suggests that Bitcoin is in a position to confirm a new bull market by the end of March. Rekt also says that based on BTC’s current market structure, it’s likely the “calm before the storm” for Bitcoin.
“[This coming] Saturday, the BTC monthly candle will have closed above the macro downtrend to confirm a new bull market…
Only a few days left and BTC is still well in the clear to perform a bullish break of the macro downtrend and monthly close above the key resistance.
Short-term, some dipping in price could occur but mid- to long-term, BTC is setting up for a new macro uptrend.”
According to Rekt, Bitcoin is forming an inverse head and shoulders, a price pattern that traditionally suggests a slow trend reversal to the upside.
“BTC inverse head and shoulders played out exceptionally well.
BTC rallied +40% since perfectly tagging the ~$20,000 to form the right shoulder.”
At time of writing, BTC is trading for $27,764.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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