A closely watched crypto strategist believes that Bitcoin (BTC) will correct to levels that will make traders think a new bear market has begun.
Pseudonymous analyst Rekt Capital tells his 388,600 followers on social media platform X that he believes the Bitcoin bull market is far from over.
But he thinks Bitcoin is preparing for a substantial correction that will make the BTC bulls think twice about their current positions.
“Bitcoin will bounce back deep enough to convince you that the bull market is over.
And then it will resume its upward trend.”
Looking at Bitcoin’s weekly chart, Rekt Capital says the correction is likely to gain momentum if BTC ends the week below $41,325.
“BTC loses low range as support.
However, this has not yet been confirmed.
A weekly close below the lowest level is necessary, because the price here would previously have a negative impact.
A weekly close below the low range would start the breakdown process.”
The trader also shares a chart suggesting that BTC could correct to around $35,000 before the halving in April 2024, when miner rewards are halved.
While the analyst is bearish on BTC in the short to medium term, he remains bullish on Bitcoin’s long-term prospects. He says the crypto king has two major catalysts that push the price will go higher in the coming months.
“The BTC ETF (exchange-traded fund) is similar to the halving in that both typically have a long-term effect on the price
It takes months for these crucial catalysts to affect the price
The gold ETF is a good example of how an ETF can influence the price over the long term.”
At the time of writing, Bitcoin is worth $41,570.
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Generated image: Midjourney