Markets
Trading expert sets condition for Bitcoin to “recover”
Bitcoin (BTC) consolidates above $67,000 after being rejected at $70,000, as the market anticipates a potential breakout.
Indeed, cryptocurrency trading the Rekt Capital expert believes that Bitcoin has room for an escape, but the cryptocurrency must eliminate specific obstacles.
Particularly, in a job on X (formerly Twitter) on June 1, the expert said that Bitcoin’s path to recovery depends on stopping its current trend of forming lower highs.
Rekt Capital’s analysis highlighted a consistent rejection of Bitcoin at falling prices, a trend that has characterized the cryptocurrencies performance over the past few months.
He noted that the $71,600 and around $70,000 price levels acted as resistance in Bitcoin’s recent trading history. These zones have repeatedly put the brakes on Bitcoin’s rally attempts, confirming them as significant barriers that must be overcome for a bullish reversal to materialize.
“Bitcoin continues to be rejected at lower and lower prices, forming a series of lower highs. First Bitcoin rejected at ~$71,500. Then the price confirmed the blue square as the local coverage area, consistent with recent history. When this series of lower highs ends, that’s when Bitcoin will start to rally again,” he said.
Implication of Bitcoin Price Movement
In technical terms, a lower peak occurs when a peak is lower than the previous peak, signaling a bearish trend as sellers increasingly dominate the market. The identification of successive highs below the $71,500 mark, followed by subsequent rejections at lower and lower prices, highlights persistent downward pressure on the price of Bitcoin.
According to the analysis, when Bitcoin makes a higher high, it would indicate a change in market sentiment, potentially paving the way for a resumption of bullish activity.
On March 26, the expert also underlines that if Bitcoin successfully retests the $69,170 zone, it will allow further upside.
Successful retests in the orange zone (green circles) allow the increase to continue
But the retests dating from March only fed into the higher local structures (blue squares).
History suggests this trend may continue, as Bitcoin rarely hits new all-time highs… pic.twitter.com/UVZ8xvFfXG
– Rekt Capital (@rektcapital) May 26, 2024
Notably, Bitcoin failed to maintain the momentum established earlier in the week after the crypto soared to $69,000 on Monday. However, the bulls were unable to maintain the upward trajectory as the crypto pulled back. This coincided with the hacking of the Japanese network crypto exchange DMM Bitcoin, which lost over $300 million in Bitcoin.
Overall, Bitcoin remains sluggish, failing to make significant progress in either direction.
Bitcoin Price Analysis
Bitcoin’s consolidation is evident in the asset’s weekly timetable, which reflects a correction of more than 2% during the period. Over the past 24 hours, Bitcoin is down more than 0.1%, trading at $67,485 at press time.
In the meantime, the challenge lies with Bitcoin bulls to help the asset break out of the current consolidation so that it can have a real chance of hitting a new all-time high.
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