Popular cryptocurrency analyst and enthusiast Rekt Capital has recently analyzed the performance of Bitcoin (BTC) and suggested that the cryptocurrency is on the brink of a breakout from a weekly range. According to Rekt Capital, Bitcoin has been trading within a range he referred to as Black-Black, ever since facing an 18% correction. This range was formed by the candle-bodied peak and the upside-wicking peak from 2021. The key indicator for a breakout, as highlighted by Rekt Capital, is regaining the $69,200 Range High. This would signal that Bitcoin is ready to break out of the weekly range and potentially put an end to the pullback period. Recently, Bitcoin surpassed the $69,200 level, initiating a breakout movement.
Breakout Process Initiated
Rekt Capital pointed out that the first phase in the breakout process is a Weekly Close above the Range High. However, in order to confirm the breakout, Bitcoin might need to retest the range high as new support. This retest would serve as the second phase in validating the breakout from the weekly range. While the breakout process seems to be in motion, a recent drop in the price of Bitcoin has sparked speculations about its next move. Bitcoin started the day at around $71,000 but later fell to the $69,200 level. Currently, Bitcoin is trading at $69,500, indicating a decline of about 1.29% in the past day. Despite the retracement, BTC’s market cap has decreased by the same percentage, while its daily trading volume has surged by over 52%.
Optimism Amidst Decline
Despite the decline in price, investors remain optimistic about Bitcoin’s future performance, especially with the halving event approaching. Analysts believe that Bitcoin could perform strongly in April, considering its historical trends. Zia Ul Haque, the Founder of Open4Profit, emphasized that April has historically outperformed March in terms of price increases for Bitcoin. According to Haque’s data, April has seen an average of 14.2% price increase. With the upcoming halving event in April, Haque anticipates even better performance this time. The pre-halving narrative is expected to attract significant attention to the market.
The analysis of Bitcoin’s breakout potential offers valuable insights into the current market sentiment. While the recent price drop may have raised uncertainties, the overall bullish outlook remains intact. As Bitcoin continues to navigate through its breakout process, investors are advised to stay informed and conduct their own research before making any investment decisions. The impending halving event and historical price trends in April could potentially fuel Bitcoin’s growth in the coming weeks. It is important for investors to approach the market with caution and manage risks accordingly.
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