According to crypto analyst Rekt Capital, breaking one critical resistance range for Bitcoin could lead to a dramatic change in its market structure and usher in a new bull run. This resistance spans from $58,000 to $69,000, and represents a level that has weighed down BTC’s price advance multiple times in 2021.
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Resistance Flips to Support After Halvings
As Rekt Capital explains, this resistance zone consistently repels Bitcoin’s price ascent, often leading to bear markets as BTC searches for a bottoming price. Following Bitcoin’s halving in 2020, BTC has managed to reach this price zone twice, each instance followed by a significant bullish run. The first time Bitcoin approached this zone in March 2021, it faced rejection and didn’t find a bottom until August. Then, in October 2021, when Bitcoin revisited this zone, it marked the beginning of the bear cycle.
In 2016 and 2020, following previous halvings, Bitcoin revisited its all-time high regions a few months after the supply shock, testing them as a new floor. On both occasions, successfully holding support in the range initiated a new bull market, culminating in fresh all-time highs.
History Poised to Repeat
According to Rekt Capital’s analysis, Bitcoin is likely to follow a similar pattern after its next halving in April 2024. He expects BTC to revisit the $58k-$69k zone around August 2024, approximately 4 months after the halving. If Bitcoin can flip this resistance into support once again, Rekt sees a clear path to new highs above $100k.
Impact on Altcoins
Another key implication is how reclaiming this resistance level will impact altcoins. With Bitcoin rising into uncharted territory, money tends to flow out of BTC and into large and small-cap altcoins.
As Rekt notes, Bitcoin flipping $58k-$69k support would “really set off money flow into altcoins” generating significant returns. This would kickstart a new “altseason” where traders pivot from Bitcoin to chase upside in the wider crypto market.
Plenty of Time Left in Bull Cycle
Finally, Rekt Capital emphasizes there is still ample time for this scenario to play out. With the next halving not until April 2024, he estimates a fresh peak for this bull market arriving in 2025. This gives Bitcoin 7-9 months after retesting key resistance to embark on a sustained uptrend.
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In conclusion, Rekt Capital views the $58k-$69k range as a crucial level that, if recaptured as support, could dramatically shift Bitcoin’s market structure. Based on past market cycles, this would pave the way for new all-time highs and an altcoin boom.
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