Bitcoin
Trading Expert Sets a Condition for Bitcoin to ‘Recover Again’
Bitcoin (Bitcoin) is consolidating above $67,000 after facing rejection at the $70,000 mark as the market anticipates a potential breakout.
In fact, crypto trading expert Rekt Capital believes that Bitcoin has room for an escape, but the cryptocurrency needs to eliminate specific barriers.
Particularly, in a publish about X (formerly Twitter) on June 1, the expert stated that Bitcoin’s recovery path depends on the cessation of its current pattern of forming lower highs.
Rekt Capital’s analysis highlighted a consistent rejection of Bitcoin at falling prices, a trend that has characterized the cryptocurrency performance in recent months.
He noted that price levels of $71,600 and around $70,000 acted as resistance in the recent trading history of Bitcoin. These zones have repeatedly limited Bitcoin’s recovery attempts, confirming them as significant barriers that must be overcome for a optimistic reversal to materialize.
“Bitcoin continues to bounce at lower and lower prices, forming a series of lower highs. First Bitcoin rejected at ~$71,500. So, the price confirmed the blue square as the local coverage area, as per recent history. When this series of lower highs ends, that is when Bitcoin will start to recover again,” he said.
Implication of Bitcoin Price Movement
In technical terms, a lower high occurs when a peak is lower than the previous peak, signaling a rude trend as sellers increasingly dominate the market. The identification of successively lower highs at the $71,500 mark, followed by subsequent rejections at progressively lower prices, underlines persistent downward pressure on the Bitcoin price.
Based on analysis, when Bitcoin sets a higher high, it would indicate a change in market sentiment, potentially paving the way for renewed bullish activity.
On March 26th, the specialist also pointed that if Bitcoin successfully retests the $69,170 area, it will allow for further upside.
Successful retests in the orange area (green circles) are what allow for greater advantages
But retests dating back to March only fed the main local structures (blue squares)
History suggests this trend may continue, as Bitcoin rarely reaches 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 surged to $69,000 on Monday. However, the bulls were unable to sustain the upward trajectory as the crypto pulled back. This coincided with the hacking of Japan crypto exchange DMM Bitcoin, which lost over $300 million worth of Bitcoin.
Overall, Bitcoin remains sluggish, failing to make a significant move in any direction.
Bitcoin Price Analysis
Bitcoin’s consolidation is evident in the asset’s weekly schedule, which reflects a correction of more than 2% in the period. In the last 24 hours, Bitcoin has fallen more than 0.1%, trading at $67,485 at press time.
Meanwhile, the challenge falls to Bitcoin bulls to help the asset break out of the current consolidation so it can have a real chance of reclaiming a new record high.
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