BTC recorded a bearish candlestick closure in August, closing below approximately $27,150, effectively confirming it as lost support, according to Rekt Capital.
Rekt Capital’s observations about Bitcoin are not made in isolation but are rooted in historical price and cycle behaviors of Bitcoin.
The upcoming monthly candlestick closure for Bitcoin could have profound effects on the asset’s short and medium-term trajectory. All eyes are now on whether BTC will close above or below the critical $27,150 level.
The famous cryptocurrency analyst drew attention to the importance of the monthly close in Bitcoin: A close below this level will increase the negativity!
Famous Analyst Examines the Current Situation of Bitcoin
Renowned crypto analyst Rekt Capital emphasized the significance of the recent monthly close for Bitcoin. In a tweet posted on Twitter, he noted that Bitcoin had touched the monthly level of $27,000, which currently acts as resistance.
He stated, “The upcoming monthly close is very near. Bitcoin needs to close above $27,091 on a monthly basis for this to be a fakeout. Otherwise, the breakdown will be technically confirmed.”
To provide some historical context to this statement, there was a significant development for the leading cryptocurrency in August. BTC closed the month below approximately $27,150, recording a bearish candlestick closure. According to Rekt Capital, this data point effectively confirmed it as lost support.
At that time, the analyst who noted this development suggested that BTC might rise to $27,150 again and “perhaps even exceed it in September.” However, there may be a relief rally before $27,150 is officially confirmed as new resistance, likely taking BTC to around the $23,000 region if $27,150 is lost.
Bitcoin Predictions Based on History
Rekt Capital’s observations about Bitcoin are not made in isolation but are rooted in historical price and cycle behaviors of Bitcoin. By drawing parallels with previous patterns, Rekt Capital shed light on trends from around 200 days before a bearish event.
These similar points in historical pullbacks have led to two primary scenarios, as noted by Rekt Capital. Firstly, an immediate pullback often occurred during the same period. Secondly, if there’s a recurring pullback of between -24% to -37% in 2023, Bitcoin could retest a lower macro level and potentially push its price below $20,000.
The analyst didn’t stop there, highlighting ideal accumulation stages for investors. “The best time to accumulate Bitcoin was late 2022 near the bear market bottom. The second-best time to accumulate Bitcoin would be upon a deeper pullback ahead of the halving,” he said.
Rekt Capital shifted the focus toward potential future outcomes, speculating interestingly on Bitcoin’s post-halving price action: “If ~$31,000 is the peak of 2023. Then, the next times we see these prices will be almost immediately after the halving. The only difference between now and then? BTC could still pull back from here in the pre-halving period. But after the halving, BTC goes much higher from current prices.”
In summary, the upcoming monthly candlestick closure for Bitcoin could have profound effects on the asset’s short and medium-term trajectory. All eyes are now on whether BTC will close above or below the critical $27,150 level – an indicator that could confirm a technical breakdown or continue an historically atypical price rally.
