A widely followed crypto analyst believes that Bitcoin (BTC) could remain in a downtrend unless two key events occur.
Pseudonymous crypto trader Rekt Capital tells his 482,600 followers on the social media platform X that a bullish Bitcoin reversal could be confirmed if the crypto king convincingly flips the descending trendline into support.
“Bitcoin needs a daily close followed by a successful retest of the downtrend as new support to fully confirm a breakout beyond this downtrend.”
The analyst also says that Bitcoin is showing bullish divergence on the daily time frame with the Relative Strength Index (RSI), a momentum oscillator indicator. A bullish divergence, which suggests price will start to increase, occurs when the price of an asset records lower lows while indicators are witnessing higher lows.
“BTC: the bullish divergence is playing out. And Bitcoin is now challenging the downtrend for a chance at further breaking out.”
On the weekly chart, the analyst is closely watching to see whether Bitcoin can reclaim the range low to signal an uptrend.
“Bitcoin only needs to rally an extra +3.5% to the upside to position itself for a weekly candle close above $60,600 to reclaim the range low. Bitcoin needs to reclaim this re-accumulation range.”
Bitcoin is trading for $57,397 at time of writing, down slightly in the last 24 hours.
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