Well-known crypto analyst Rekt Capital, which accurately predicted Bitcoin's decline earlier this year, presented a potential bearish scenario for the cryptocurrency.
The expert warned, that Bitcoin’s support level at $60,000 is crucial. A move below it could trigger a major capitulation event where extreme fear and pessimism would dominate the market.
Rekt Capital explained that a break of this key level would lead to a period of “bargain buying” as investors would sell in panic.
Despite the short-term volatility, the analyst remains optimistic about Bitcoin’s overall trajectory. He suggests that BTC has consistently formed and exited re-accumulation ranges throughout this bull market cycle.
If the cryptocurrency manages to regain $60,000 as support, he Rekt believes the price could rise to $70,000 and eventually exceed it, leading to a “parabolic phase of rise” after the halving event.
The expert believes that Bitcoin’s history shows similar cycles, with the current phase likely to be another re-accumulation phase before a big spike.
Many countries around the globe are beginning to show interest in crypto and Bitcoin-related investment products.
Bitcoin (BTC) gained steam yet again and it surged above $64,000 after a notable 1.75% price increase in the past hour and 3% in the past 24 hours.
A popular quantitative analyst known as “PlanB” suggests that large crypto investors, or whales, are currently holding back from making significant moves as they await the outcome of a key upcoming event.
The cryptocurrency landscape, particularly Bitcoin, tends to respond to significant economic indicators from the U.S. as traders adapt their strategies to align with macroeconomic trends.