According to popular crypto analyst Rekt Capital, Bitcoin has successfully broken out of a months-long downtrend, potentially setting the stage for a rally to new heights.
The analyst points to Bitcoin’s convincing break above a series of lower highs, with a weekly close well above the critical $61,900 level. This move, Rekt Capital argues, signals the end of the downtrend that has been in place since late July.
The road to Bitcoin hitting $67,000
While the breakout is certainly bullish, Rekt Capital cautions that a retest of the former downtrend line is possible. This could see Bitcoin pull back to around $61,300, which coincides with several key technical indicators:
- The 21-week Exponential Moving Average (EMA), a crucial bull market support level
- The Pi Cycle Moving Average, another significant long-term trend indicator
This confluence of support suggests that any dip to this area could present a strong buying opportunity for bulls looking to enter or add to their positions.
The analyst’s ultimate target appears to be the top of a larger downtrending channel, which sits around $67,000. Breaking this level would be a major milestone, potentially opening the door to new all-time highs for Bitcoin.
It’s important to note that while the short-term outlook appears positive, the crypto market remains highly volatile. Traders and investors should always consider multiple scenarios and manage their risk accordingly.
The coming weeks will be crucial for Bitcoin. If it can hold above the broken downtrend and successfully challenge the $67,000 level, we could see a renewed surge of enthusiasm in the crypto market.