What a start to the week for crypto traders! Not only are meme coins pumping, but most altcoins are also seeing gains, and most importantly, the Bitcoin price is on the rise.
BTC now trades around $66k after surging 5% today.
Rekt Capital, a renowned crypto analyst, shared insights in his newsletter about how the Bitcoin price could hit $70k and what might come next.
What you'll learn 👉
Bitcoin’s Recent Price Action
Over the past two weeks, Bitcoin has managed to retest the downtrend dating back to late July as support. This retest has been successful for two consecutive weeks, indicating a strong foundation for potential further gains.
Interestingly, Bitcoin has also performed a volatile retest of the 21-week Bull Market Exponential Moving Average (EMA). Rekt Capital points out, “Notice how the bottom of the green boxed area is confluent with the July Downtrend retest and the retest of the 21-week EMA is confluent with the top of the green box.”
This green box represents the Monthly old All-Time High demand area. Bitcoin has solidified support in this overall green area, doing so at a Higher Low compared to last month’s and August’s downside wicking lows.
Read also: How Much Could Kaspa (KAS) and SUI Tokens Be Worth at the End of the Bull Run?
Challenging Resistance Levels
Following these successful retests of key levels, Bitcoin is now challenging the August highs again at around $64,200. Rekt Capital notes, “Given the strength in Bitcoin’s recovery since the successful retest of the Downtrend and 21-week EMA, there are clear signs that the August highs are weakening as a resistance.”
The analyst highlights that when BTC rejected from the August highs previously, the price dropped 18%. In contrast, the current retracement period appears to have ended at just an 8.5% drop, suggesting diminishing selling pressure.
A Weekly Close above the August highs, followed by a retest of them as support, could put significant buy-side pressure on the Downtrending Channel Top. If these technical milestones occur on the Daily timeframe, the process could accelerate.
The Path to $70k and Beyond
Bitcoin has successfully reaffirmed its support at the Weekly ReAccumulation Range Low of $60,600. As a result, it’s now positioned for a potential move across the entire range.
The main obstacle in Bitcoin’s path is the series of Lower Highs dating back to mid-March 2024. However, given how Bitcoin has almost completely recovered from its rejection at the Lower High a month ago, there’s reason to believe this resistance may not hold for much longer.
Rekt Capital concludes, “Breaking this diagonal resistance would open price up to a revisit of the ReAccumulation Range High at ~$71,300 for a legitimate challenge of breaking out into new All-Time Highs.”
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