A crypto analyst who nailed Bitcoin’s pre-halving correction last year believes that BTC is poised to ignite fresh rallies.
Pseudonymous analyst Rekt Capital tells his 553,600 followers on the social media platform X that Bitcoin needed a weekly candle close above $119,200 to trigger a breakout from a bullish continuation pattern.
[adinserter block="1"]With BTC closing the previous week at around $119,400, the analyst says Bitcoin is now in the process of flipping the resistance level into support and that breakout rallies are in sight.
“Bitcoin did it.
Bitcoin Weekly Closed above the ~$119,200 Bull Flag Top and is now in the process of retesting it to fully confirm the breakout.
Downside wicking is possible on this retest, as long as the Bull Flag Top is maintained as support.”
At time of writing, Bitcoin is trading for $118,183.
Another crypto asset that had a strong weekly close is the memecoin Pudgy Penguins (PENGU), according to the trader. While Rekt says the altcoin looks strong, he notes that it needs to flash signs of sustained momentum to invalidate a bearish divergence on the daily chart.
A bearish divergence is a reversal signal, suggesting that momentum is waning for an asset after a move up.
“Pudgy Penguins has performed its highest ever Weekly Close, doing so above its final major Weekly resistance (blue).
Retesting the $0.04 old resistance (blue) into new support would confirm a successful post-breakout retest.
While the positioning is favourable, there are mounting Bearish Divergences on the Daily that PENGU will need to soon invalidate for stronger bull bias.”
At time of writing, PENGU is worth $0.041.
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