Bitcoin News

Here’s What Bitcoin Needs To Do To Confirm a Breakout From the Current Downtrend, Says Analyst


A widely followed crypto analyst believes that Bitcoin (BTC) could remain in a downtrend unless two key events occur.

Pseudonymous crypto trader Rekt Capital tells his 482,600 followers on the social media platform X that a bullish Bitcoin reversal could be confirmed if the crypto king convincingly flips the descending trendline into support.

“Bitcoin needs a daily close followed by a successful retest of the downtrend as new support to fully confirm a breakout beyond this downtrend.”

Source: Rekt Capital/X

The analyst also says that Bitcoin is showing bullish divergence on the daily time frame with the Relative Strength Index (RSI), a momentum oscillator indicator. A bullish divergence, which suggests price will start to increase, occurs when the price of an asset records lower lows while indicators are witnessing higher lows.

“BTC: the bullish divergence is playing out. And Bitcoin is now challenging the downtrend for a chance at further breaking out.”

Source: Rekt Capital/X

On the weekly chart, the analyst is closely watching to see whether Bitcoin can reclaim the range low to signal an uptrend.

“Bitcoin only needs to rally an extra +3.5% to the upside to position itself for a weekly candle close above $60,600 to reclaim the range low. Bitcoin needs to reclaim this re-accumulation range.”

Source: Rekt Capital/X

Bitcoin is trading for $57,397 at time of writing, down slightly in the last 24 hours.

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