Bitcoin (BTC) Analyst Predicts Correction Before Bullish Surge
A widely followed crypto strategist is of the opinion that Bitcoin (BTC) is likely to experience a correction significant enough to give traders the impression of entering a new bear market.
The pseudonymous analyst known as Rekt Capital that, in his view, there will be a price decline that will make some people think a Bitcoin bear market has just begun. However, he foresees a substantial correction that may cause those bullish on BTC to reconsider their current positions.
Bitcoin will retrace deep enough to convince you that the Bull Market is over
And then it will resume its uptrend$BTC #BTC #Bitcoin
— Rekt Capital (@rektcapital) January 18, 2024
The analysis of Bitcoin’s weekly chart by Rekt Capital suggests that the correction could gain momentum if BTC concludes the week below the $41,325 mark.
#BTC is losing the Range Low as support
This is not confirmed yet however
A Weekly Close below the Range Low is needed as previously price would downside wick here
Weekly Close below the Range Low would kickstart the breakdown process$BTC #Crypto #Bitcoin https://t.co/FXNHsk5hpH pic.twitter.com/XPFOQ7b3CM
— Rekt Capital (@rektcapital) January 19, 2024
According to this perspective, the evident loss of support at the range low for BTC is a critical factor. While not officially confirmed, the analyst emphasizes the significance of a weekly closure below the range low, pointing out historical price action that indicates a downside wick in this region. A weekly close below the range low, as per Rekt Capital, would initiate the breakdown process.
READ MORE: Bitcoin Holds Steady Despite Recent Dip
Rekt Capital also shares a chart proposing a potential correction for BTC to around $35,000, aligning with the April 2024 halving event when miners’ rewards are halved.
It's happening$BTC #Crypto #Bitcoin https://t.co/c1HsYIcuya pic.twitter.com/dAUTcbV3dz
— Rekt Capital (@rektcapital) January 19, 2024
Despite expressing a short to mid-term bearish outlook on BTC, Rekt Capital remains optimistic about Bitcoin’s long-term prospects. According to his assessment, Bitcoin has two key catalysts that could drive its price higher in the months ahead.
He draws parallels between the BTC ETF (exchange-traded fund) and the halving, stating that both tend to exert a lasting impact on price.
Rekt Capital notes that these pivotal catalysts typically take months to manifest their influence on the market, citing the gold ETF as an example of how such financial instruments can sustainably impact price over the long term.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
