A closely followed crypto analyst says Bitcoin (BTC) tends to shake traders out with false breakdowns before it resumes its upward ascent.
In a new strategy session, crypto trader Rekt Capital tells his 532,600 followers on the social media platform X that the crypto king’s swings to the downside often test the conviction of holders.
According to the analyst, Bitcoin has been using failed breakdowns this cycle to lure traders into giving up their coins before kicking off the next leg up.
“This remains to be true. Downside deviations below the range lows occur to trick investors into a fake breakdown (orange circles) before resuming into an uptrend.”
Rekt Capital goes on to say that the dips are all “reaccumulation” zones that eventually shoot to the upside given enough time.
The trader also notes that if the top crypto asset by market cap finds a weekly close above a key level, it could rip to a new all-time high.
“BTC needs a weekly close above $104,416 (red) to set itself up for a breakout to new highs. Weekly closes above the final major weekly resistance at this moment in the cycle have historically preceded strong upside.”
Last week, Rekt Capital predicted that Bitcoin would break out following its correction. The trader also warned that a huge dip is in store for the flagship digital asset after the conclusion of its next big rally.
Bitcoin is trading for $99,019, down over 5% on the day.
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