Bitcoin’s Monthly Candle Close Holds Pivotal Importance, Says Analyst
Renowned crypto analyst Rekt Capital has emphasized the significance of Bitcoin’s imminent monthly candle close. In a statement, he explained that Bitcoin is currently facing resistance at the $27,000 level, which it needs to surpass in order to avoid a confirmed breakdown. The previous month saw a bearish monthly candle close for BTC, with it finishing below $27,150 and losing support.
Historical Patterns and Insights
Rekt Capital’s observations about Bitcoin are based on its historical price and cycle behaviors. He pointed out that around 200 days before a halving event, Bitcoin tends to experience retracements. In 2015 and 2019, the cryptocurrency retraced -24% and -37% respectively during this period. Rekt Capital believes that a similar retracement in 2023 could lead Bitcoin to test its macro higher low and potentially drop below $20,000.
Accumulation Phases and Future Outcomes
Rekt Capital highlighted that the best time to accumulate Bitcoin was in late 2022 near the bottom of the bear market. The second best time is during a deeper retracement in the pre-halving period. Looking ahead, he speculated that if $31,000 was the top for 2023, then after the halving BTC could break out from its current prices.
The Implications of the Monthly Candle Close
The upcoming monthly candle close for Bitcoin holds significant importance for its short-to-mid-term trajectory. The focus will be on whether BTC closes above or below $27,150, as this will determine whether there is a technical breakdown or an atypical price rally. Currently, BTC stands at $26,687.
Hot Take: The Key Takeaway
The imminent monthly candle close for Bitcoin will have a crucial impact on its future price movement. Breaking above or below the $27,150 mark will determine the course of action for the cryptocurrency. This moment is particularly important considering Bitcoin’s historical patterns and the potential for retracements in the pre-halving period. All eyes will be on how BTC performs in the coming days.
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