Rekt Capital, a crypto analyst firm, predicts that Bitcoin will make a big move after it surges back to $64,000 in coming weeks. In a newly released video Based on past trends and chart patterns, the analyst predicts that there will be a major market move around October 2024.
Is October a Bullish Month for Bitcoin Once Again?
Rekt Capital, looking at the weekly charts, identifies an downtrending trend. BTC deviated from this channel for the past 4 weeks. It was looking for support which would allow a price increase above its bottom. The movement of BTC has met with an “fantastic recovery,” Signaling the potential of a return to top channel at $67,000 or more in the next few weeks.
“The channel bottom rebound is crucial as it has historically taken price from the channel bottom to the top in approximately two weeks on average,” Rekt Capital explained. He stressed the importance of closing weekly candles above certain levels. Especially at $67,000 and then $71,500. This would break the range high that was established after the half-doubling.
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“The consistent pattern of bouncing from the channel bottom to the top typically spans an average of two weeks, but in the current context, we are observing a potentially elongated consolidation phase at these lower levels,” Rekt Capital. The rebound is expected to follow the trajectory shown in this observation. historical patternsThe consolidation of prices at lower levels could offer investors bargain-buying opportunities.
Rekt Capital focused on technical thresholds and stressed the importance of multiple weekly candle closings above pivotal prices points. A close over $66,000 confirms the reaccumulation rangeAs a result, the market is now more likely to move upwards. A decisive close of $67,500 or higher would signal a break in the downward trend which has been dominant since March this year.
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“The weekly close above these specific levels is not merely a technical achievement but a psychological victory for market participants, indicating a weakening of sell-side pressure and a regain of bullish momentum,” noted Rekt Capital.
Bitcoin tends to show a trend of initiating major rallies around 150-160 day following an event that halved the currency. Drawing parallels to the post-halving periods The analyst said that the current conditions resemble those in 2016 and 2020. Bitcoin is around 133 day after the most recent halving.
“This cyclical observation aligns well with the current market dynamics, where Bitcoin is methodically testing and, in some cases, breaching important technical barriers,” He commented. It is important to note that this comparison takes into account not just the patterns of time but also qualitative characteristics in market behaviour during each period.
The 21-week EMA was a significant part of the analysis, as it is often regarded by many analysts as a bull market barometer. Rekt Capital emphasized its historic significance by noting “Deviations below the 21-week EMA in bull markets typically offer lucrative buying opportunities, as seen in the 2021 cycle. Currently, Bitcoin is oscillating around this EMA, providing mixed signals that require vigilant interpretation.”
Looking ahead, the analyst projects that for Bitcoin to embark on a new parabolic phase leading to price discovery and potentially new all-time highs, it must first consolidate above the $71,500 level—representing the reaccumulation range high. The $71,500 level was a previous formidable resistance. A weekly close over it could likely trigger a bullish phase.
“In the coming weeks, the market’s ability to uphold these critical supports and break through resistance levels with conviction will be paramount. This will determine the feasibility of a breakout aligning with historical patterns observed post-halving,” Rekt Capital has concluded that October is likely to be a pivotal month for Bitcoin.
BTC was trading at $63,956 as of the time this article went to press.
Featured Image created using DALL.E and chart from TradingView.com
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Source: www.newsbtc.com