dailyhodl.com
A closely followed crypto analyst says Bitcoin (BTC) may have formed a market bottom and is now looking bullish.
Crypto trader Rekt Capital tells his 541,100 followers on the social media platform X that Bitcoin is printing a bullish pattern of higher low prices on the daily chart after last week’s severe correction into the high $70,000 range.
“Looks like the higher low is in.”
He also notes that Bitcoin may be turning bullish without fully closing the CME futures gap in the $70,000 range.
A CME gap is the difference between the Friday closing price of Bitcoin futures and the Monday opening price on the Chicago Mercantile Exchange.
“Looks like Bitcoin indeed performed another downside deviation in order to form a higher low relative to last week’s low of ~$78,600 – without having to refill that lower partially filled CME Gap, as well.”
The analyst says that Bitcoin’s latest severe correction is not unusual when compared to price action in the current bull market cycle as well as previous bull market cycles
“Back in mid-December 2024, Bitcoin needed a -25% pullback to reach the top of the CME Gap between $78,000 and $80,700. In other words, it needed to drop a similar amount to the retraces we saw occur around the post-halving period of -25% to -30%.
This retrace isn’t just ordinary by standards of previous cycles where -30% retraces were the norm, it is ordinary by standards of this current cycle as well.”
He also says that the corrections may be buying opportunities.
“Worries about a premature BTC bear market will stifle your participation in a bull market.”
According to Rekt Capital, the key level for Bitcoin to break on the weekly chart reignite bullish momentum is $93,500.
At time of writing, Bitcoin is trading at $89,906.
Generated Image: DALLE3