Popular analyst Rekt Capital opened up about the question of where Bitcoin’s bottom might be in the current market correction. In his latest analysis video, he said that for Bitcoin to maintain its position within this channel, it needs to close its weekly candles above the $58,400 mark.
The analyst said that this retest is currently underway. If Bitcoin can continue closing weekly candles above the $58,400 level, it would confirm the retest’s success. Should Bitcoin fail to maintain this level, it could dip into what the analyst refers to as the “orange bargain buying zone.”
This area is where buyers typically step in, seizing the opportunity to purchase Bitcoin at lower prices. The past few months have seen volatile price swings, with downside deviations occurring even during retests of the channel bottom.
However, if Bitcoin manages to hold above this channel bottom, it could continue forming higher lows, indicating strong buying behavior. This trend of premium buying suggests that investors are confident in Bitcoin’s future price increases.
Can Bitcoin Hit $100k This Cycle?
Despite these scary price drops, Bitcoin has managed to hold its support level for the past six months. Staying above $58,500 is crucial because it would help maintain the current support zone, which could lead to a price increase and possibly new all-time highs.
Historically, Bitcoin tends to stay in a range around its old all-time highs before breaking out to new ones. This period of “reaccumulation” is important because it usually precedes a big price surge. In past cycles, after breaking old highs, Bitcoin’s price kept increasing for about 250 to 330 days before reaching a peak and then entering a bear market. The analyst said that with each cycle, the gains are getting smaller, so while Bitcoin could reach around $100,000, it’s important to time your exits carefully.
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