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Bitcoin’s recovery at the start of the week was a welcome development, especially given the incredibly bearish moves over the past month. But even as the price continues to rise, there is still a lurking danger that could bring the rally to a halt. So, it has become important that the BTC price maintains some key levels if the rally continues, and a crypto analyst has identified one of the key support levels for this.
Bitcoin must contain $55,881
Crypto analyst Rekt Capital took to X (formerly Twitter) to update his 500,000 followers on what lies ahead for the Bitcoin price. According to the crypto analyst the bitcoin price has been able to protect an important level so far, and that is the bargain area.
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This bargain area that Rekt Capital is referring to is the $53,250 level, a level that Bitcoin has held quite well. Despite the collapse, the fact that this level is maintained shows the strength of the digital asset. But even with this, the cryptocurrency pioneer still has a long way to go.
As the crypto analyst explains, what happened was that Bitcoin price held the bargain zone below the black Downtrending Channel. This means bulls need to maintain the momentum to continue the rally, and the best way to do this is to regain the $55,881 level and hold it as support.
The good news is that Bitcoin has a Weekly Close above ~$53250 to protect the bottom of the bargain area (orange) that has formed below the black Downtrending Channel.
To build on this momentum, Bitcoin would then need to reclaim $55881 (blue) as support to try… https://t.co/pSYJZpk8E3 pic.twitter.com/Y3wPkLouRH
— Rekt Capital (@rektcapital) September 9, 2024
If this support continues, the crypto analyst predicts a possible continuation of the rally. But not just any continuation, one that would be the driving force price above $60,000 once more. In this case, Bitcoin could be on its way to a brand new all-time high.
BTC hits rock bottom
It appears that sentiment is starting to recover as crypto analysts predict a rally for the Bitcoin price. Another analyst known as Cousin Crypto on X did just that pointed out that the BTC price could soon bottom out, and there are a number of reasons for that.
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Firstly, the crypto analyst points this out the BTC price has hit its first higher low in 200 days. Next, the Fed’s potential rate cuts that could happen next week could help strengthen the Bitcoin price. Third on the list is that the market is still in Extreme Fear, which typically marks the bottom of the market.
Considering all this, the analyst believes that bottom signals are flashing for the Bitcoin price. In line with Rekt Capital’s analysis, if the Bitcoin price reaches a bottom, the next move could quickly push the price above $60,000.
Featured image created with Dall.E, chart from Tradingview.com