Bitcoin Might Correct, According to Rekt Capital
Rekt Capital, a widely-followed crypto analyst, warns that Bitcoin (BTC) is on the verge of losing a critical support level as the king crypto stumbles.
Warning to Traders
With BTC trading around $21,880 (at the time of writing), down 3.5% for the day, the analyst sends a warning to fellow traders.
The analyst states that for Bitcoin to keep its technical uptrend intact, it needs to close above $22,692.
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Technical Analysis
The analyst notes that although Bitcoin held the trendline well yesterday, today’s price is wicking below it.
BTC needs to close above the green Higher Low daily to keep the technical uptrend intact.
Trading Psychology
The trader warns that it’s too early to lose hope and that Bitcoin could still climb back into its bull zone.
#BTC threatening to lose its multi-week Higher Low (green) after rejecting from ~$23400 resistance
At this stage, $BTC could still recover back into the green triangle & have this price action print as a downside wick
This Higher Low is the one to watch$BTC #Crypto #Bitcoin pic.twitter.com/zdAVm0sodI
— Rekt Capital (@rektcapital) February 9, 2023
He highlights the potential pitfalls of fear of missing out (FOMO) based trading.
After a successful trade, dopamine is released in the brain, leading to the desire to repeat this experience. The trader advises traders to let the euphoria of the win die down and allow enough time for their neurological chemistry to return to baseline.
If a trader must engage in FOMO, they should choose a red day as “they won’t have enough ammo to FOMO on a green day.”
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
