A well-known crypto analyst is highlighting a crucial technical level that BTC must reclaim to revive its bullish momentum.
Aqua Ad Server Asynchronous JS Tag – Generated with Revive Adserver v5.5.2
Rekt Capital suggests that Bitcoin’s current price behavior resembles its 2021 pattern when the cryptocurrency was consolidating between two important exponential moving averages (EMAs) on the weekly chart. To resume its upward trend, he believes Bitcoin needs to establish the 21-week EMA as a solid support level.
Earlier this week, Bitcoin faced resistance at the 21-week EMA, causing it to continue consolidating between the two Bull Market EMAs, much like in mid-2021.
Aqua Ad Server Asynchronous JS Tag – Generated with Revive Adserver v5.5.2
According to Rekt Capital, the key indicator of a bullish breakout would be a weekly close above the 21-week EMA, followed by a retest that confirms it as new support. As of now, Bitcoin is trading around $82,536.
READ MORE:
Bitcoin vs. the Dollar: BlackRock CEO Warns Policymakers
Turning to the altcoin market, Rekt Capital remains cautious. He points to the Bitcoin Dominance (BTC.D) chart, which reflects Bitcoin’s share of the total crypto market capitalization. Currently hovering at 62.26%, BTC.D could potentially rise to a long-standing resistance level near 71%. Rekt Capital suggests that if BTC dominance hits this mark and then declines, it could signal the onset of a long-awaited altcoin season, as altcoins would likely start gaining ground against Bitcoin.
For now, the analyst sees Bitcoin dominance maintaining strength, but a rejection from the 71% mark could open the door for altcoins to outperform. Investors are keeping a close watch on these key levels as they may shape the market’s next big move.
Coinzilla Banner 300×250
Alexander Zdravkov
