Widely followed crypto analyst Rekt Capital says that Bitcoin (BTC) is right on the edge of a breakout based on classic technical analysis.
The pseudonymous analyst tells his 543,000 followers on the social media platform X that BTC is in the midst of confirming a breakout after finally closing above a downward resistance line.
Says the trader,
“Bitcoin is on the cusp of a breakout.
Mere hours away from performing the initial but crucial steps towards fully confirming a breakout beyond the multi-month Downtrend.
And when BTC breaks a technical downtrend…
BTC enters a new technical uptrend.”
Zooming out to the weekly chart, Rekt Capital says that BTC needs to move above a critical exponential moving average (EMA) to boost its chances of a sustained rally.
“Bitcoin is slowly approaching the 21-week EMA resistance (green).
Price will need a Weekly Close above ~$86,900 Sunday/Monday midnight UTC to position itself for a breakout from the triangular pattern formed by these two Bull Market EMAs.”
At time of writing, Bitcoin is trading at $84,463.
Looking at Ethereum (ETH), the second biggest digital asset by market cap, Rekt Capital says ETH needs to hold its current price range to have any shot at triggering a 2023-style rally.
“After losing its black-black Macro Range ($2,196-$3,900), Ethereum dropped right into the historical demand area below (light blue).
Since then, Ethereum upside wicked into the top of the light blue box, turning the top of the box into new resistance, like in 2023 (red circle).
More, ETH recently downside wicked below this box, potentially holding the bottom of the box as support.
ETH needs to hold the bottom of the light blue historical demand area if it wants to position itself for a repeat of mid-2023 history (green circle).”
At time of writing, ETH is trading at $1,595.
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Generated Image: Midjourney
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