Since mid-July, the crypto market has been quite calm and not very active. Some altcoins rallied earlier, driven by positive sentiment following the SEC vs. XRP decision. Meanwhile, Bitcoin remained stable and even fell from its peak in June.
Rekt Capital said BTC has not reached the necessary resistance to break the Higher High. The RSI also failed to overcome its downtrend to invalidate the weekly bearish divergence. BTC back at $30,000 is good, but no clear trend shift yet.
He added that BTC is up +100% in this third phase of the four-year cycle. Although this increase is smaller compared to previous trends, we should expect declining returns. Still, there is potential for some additional profit this year, albeit not too high.
He compared Candle 3 to a low in the BTC Four Year Cycle. Past examples show significant increases – in 2015 there was an increase of +234% and in 2019 an increase of +316%. He believes that Candle 3 could yield even more profit than expected in 2023.
The analyst added that BTC has successfully passed around $29,250 and reached a high of around $30,200. The focus is now shifting to how BTC performs after this upward move. If it exceeds about $29,250, that could indicate growing market strength. However, if you drop below this level, the recent upside would turn into a weekly upside.
He wrote on Twitter: “#BTC has managed to break past ~$29250 and has rocked upside down to ~$30200. Now it’s about how $BTC behaves after this rally. Stay above ~$29250 and that would be a sign of development
At the time of writing, Bitcoin is trading hands at $29,915 and is up more than one percent.
