Recently, cryptocurrency analyst Rekt Capital has observed a potential breakout process for Bitcoin (BTC) from a weekly range. This breakout process comes after Bitcoin has been trading within a range that the analyst referred to as Black-Black, following an 18% correction. The range is defined by the candle-bodied peak and upside-wicking peak from 2021. Rekt Capital suggested that reclaiming the $69,200 Range High could signify the cryptocurrency’s readiness to break out of this weekly range and possibly mark the end of the pullback period. It seems that this forecast has materialized as Bitcoin has surpassed the $69,200 level, sparking breakout activity.
Phases of the Breakout Process
According to Rekt Capital, the first phase of the breakout process is a Weekly Close above the Range High. However, for Bitcoin to continue its upward movement, it may need to retest the range high as new support. This retesting process would validate the breakout from the weekly range, marking the second phase of the breakout process. The analyst’s analysis aligns with the recent price drop in Bitcoin, creating speculations about its next move. Despite the pullback, investors remain optimistic about the future performance of the digital asset.
Bitcoin experienced a decline in price, dropping from the $71,000 threshold to the $69,200 level in a matter of hours. Currently, Bitcoin is trading at $69,500, indicating a 1.29% decrease in the past day. Although the market cap of BTC has also decreased by the same percentage in the last 24 hours, the daily trading volume has increased by over 52%. This suggests that investors are still bullish on Bitcoin despite the recent retracement.
Many analysts and investors anticipate a strong performance from Bitcoin in April, given its historical trends. Zia Ul Haque, the Founder of Open4Profit, highlighted the superior performance of Bitcoin in April compared to March based on historical price data. According to Haque, April has witnessed an average 14.2% increase in price over the years. With the upcoming Bitcoin halving event scheduled for April 20th, there is a heightened expectation for increased market attention and potential price appreciation.
The recent breakout activity in Bitcoin signals a potential upward movement for the cryptocurrency. While the market may experience short-term fluctuations and corrections, the overall outlook remains optimistic, especially with the upcoming halving event. Investors should conduct their research and analysis before making any investment decisions in the volatile cryptocurrency market. Remember, investing carries inherent risks, and caution is always advised.
Leave a Reply