Amid signs of a thawing crypto bear as Bitcoin BTC/USD hit the $35,000 mark briefly, a well-known crypto analyst has questioned the potential end of its bearish trend and analyzed key price ranges that could determine its future trajectory.
Rekt Capital's latest analysis provides some insights on whether the bearish thesis for Bitcoin and Ethereum ETH/USD is over.
Bitcoin's monthly performance, with a rise of more than 14%, has been commendable.
Observers noted a potential monthly range formation between approximately $27,150 to $30,450.
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FOMO: The presence of upside wicks on the monthly timeframe is not a new occurrence, and it will be pivotal to see if these 'Fear Of Missing Out' (FOMO) wicks form as we approach month-end.
A monthly close beyond this black range high is essential, but this alone won't assure upside continuity.
This range high must also be converted into a support level for a bullish scenario to play out.
On a weekly timeframe, Bitcoin's price showcases a different range, approximately between $25,880 to $30,630. The same principle applies: keeping an eye on potential upside wicks beyond this range's high is crucial.
An area on this weekly chart, marked in orange, represents the FOMO wick territory.
If Bitcoin fails to close weekly above this red range high or reclaims it as support, it could retreat to the lower high resistance for another attempt at breaching it.
The analysis suggests that while the breach of this lower high is significant, it doesn't change the broader trend. Bitcoin's price is currently playing within the described range, and if it fails to break the range's high resistance, a downward movement within this range might be the next course of action.
The potential points for retests have been identified by Rekt Capital.
A successful retest could lead to a price reversal back to the range high. However, a failed retest would rely on the new higher low for support, and if that fails, then the range low would be the next support level to watch.
Overall, the broader view posits Bitcoin is in a macro consolidation phase, which aligns with its historical behavior at this point in its market cycle.
Investors and enthusiasts are advised to keep a close watch on these indicators and ranges to navigate their next move.
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