A Crucial Point Holds the Secret to Bitcoin's Next Bull Market Surge: According to an Analyst's View
Crypto analyst Rekt Capital believes Bitcoin's recent consolidation above $104,000 could signal a new all-time high 📈
The crypto market is on edge as king cryptocurrency, Bitcoin, tests its critical support level once more. This decisive moment could tip the scales in favor of bulls or send sellers back in control.
The Wall at $104,400
In a recent newsletter, Rekt Capital emphasized the importance of Bitcoin's extended retest of the $104,400 level as support. He noted that Bitcoin's breakout from a multi-month "re-accumulation range" sets the stage for this critical showdown.
Rekt Capital warns that failing to hold above $104,400 on weekly closes could spell trouble for bitcoin bulls. "It's tough to foresee lower prices until the $104,400 level breaks down," the analyst stated.
Despite traders' growing fatigue and negative sentiment, Bitcoin's retreat from recent highs has been relatively modest, amounting to just a -10% pullback, more of a time-based capitulation rather than a price-driven plunge. In Rekt Capital's eyes, falling below this level risks a deeper correction.
Conversely, sustained support at $104,400 could lay the groundwork for another challenge against the formidable resistance at $108,890, propelling Bitcoin into what he calls "Price Discovery Uptrend 2."
"As long as BTC holds $104400, it's positioned for upside over time," declared the analyst.
The slow transition, though marked by lower volatility, has shown encouraging technical signals, such as higher lows and diamond-shaped formations. These patterns often predict robust upward movements.
The Importance of Holding Ground
Even geopolitical uncertainty stemming from the Israel-Iran military conflict hasn't managed to significantly disrupt Bitcoin's structural support, further boosting the asset's bullish case.
At press time, Bitcoin was trading around $105,569, a 2% drop over the past 24 hours and a 3.4% decline in the last seven days. Yet, it continues to hold a 60.2% gain over the past year.
The tight consolidation near the all-time high of $111,814 may indicate growing tension, with investor Daan Crypto Trades forecasting a "large move" within the next few weeks. On-chain data shared by Axel Adler Jr. reveals a sustained drop in Coin Days Destroyed (CDD) Momentum below zero, indicating reduced selling pressure from long-term holders. Alongside a consistent decrease in exchange-held BTC, the scenario points toward a market primed for supply shocks.
Key Takeaways
- Bitcoin holding above $104,400 on weekly closes is crucial for confirming a successful retest of this demand zone and paving the way for higher prices and a potential move into the "Price Discovery Uptrend 2."
- Weekly closes above the $108,890 resistance would be a strong indicator of continued bullish trend acceleration and the potential for a significant price rally.
- On shorter timeframes, breaking the recent two-week downtrend and turning it into support, along with retesting levels around $106,600, underscores building momentum toward bullish continuation.
In short, the significance of Bitcoin sustaining its position above $104,400 lies in its role as a critical demand zone and key support level. A steady weekly close above this price level would strongly suggest that Bitcoin is on track to enter a new phase of upward price discovery, with the potential to scale past previous resistance levels and resume a strong bullish trend.
- Rekt Capital's analysis highlights the importance of Bitcoin maintaining its support at $104,400, as breaking this level could signal trouble for Bitcoin bulls.
- If Bitcoin manages to hold above $104,400 on weekly closes, it could potentially move into "Price Discovery Uptrend 2", setting the stage for higher prices.
- Continued investment and trading in Bitcoin, as well as positive technical signals, suggest that a strong bullish trend may resume if Bitcoin can successfully retest the demand zone above $104,400.
