According to prominent crypto analyst Rekt Capital, Bitcoin is approaching a crucial technical level that, if broken, could set off a new parabolic bull run. In his latest video, Rekt Capital discusses the major resistance zone between $58,000 and $69,000, emphasizing how turning...
According to prominent crypto analyst Rekt Capital, Bitcoin is approaching a crucial technical level that, if broken, could set off a new parabolic bull run. In his latest video, Rekt Capital discusses the major resistance zone between $58,000 and $69,000, emphasizing how turning this area into support is key for Bitcoin’s next rally.
Bitcoin is currently trading around $37,200, up 5% in the last 24 hours. However, according to Rekt Capital, the crypto is fast approaching a pivotal point that could determine its trajectory over the next few years. As he states, “Breaking this resistance would change everything; this is the $58k to $69k resistance.”
Historically, such technical resistance levels act as initial rejection points for Bitcoin, pushing its price back down temporarily before eventually morphing into support zones. As Rekt Capital points out, “These support retests enable a rally to new all-time highs every single time.”
If Bitcoin gets rejected again at this level in the short-term, the analyst expects further retracement and bottoming out before another retest. However, he remains convinced the resistance will turn into support, saying, “At some point in the future, we’re going to successfully retest this region as a new support and then break to new all-time highs.”
Interestingly, Rekt Capital links these crucial resistance-turned-support transitions to Bitcoin’s halving cycles. He notes that following each halving, Bitcoin tends to retest old resistances as new supports.
“After the halving, we tend to see this area of resistance turn into a new support,” he states.
Extrapolating this pattern, the analyst suggests that a few months after the next halving in 2024, Bitcoin could retest the $58k to $69k zone as support, likely in August 2024. This would set the stage for a new bull market peak in 2025.
“If Bitcoin were to retest this area of old resistance as a new support 120 days after the halving, that would mean that in August 2024… we’d already be at around the $50k to $69k region, retesting this region as a new support,” explains Rekt Capital.
He believes this retest and formation of the new support will also trigger immense capital inflows into altcoins, leading to parabolic rallies across crypto markets. As he puts it, “This retest which is going to be at some point after the halving, a few months after the halving, this retest is really going to set off also money flow into altcoins.”
Rekt Capital concludes by noting that these explosive, parabolic rallies tend to be short-lived, lasting just a few months. “We only have a few months of parabolic price action to new all-time highs where we do see pretty much uninterrupted upside with volatile candles and downside wicks on the way up,” he remarks.
Rekt Capital outlines a highly bullish scenario for Bitcoin over the next couple of years, with the $58k to $69k zone being the key technical level to watch. If Bitcoin can turn this resistance into support within months after the 2024 halving, it could trigger the next parabolic bull run.
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