A widely followed crypto analyst is warning investors that Bitcoin (BTC) could fall even further if a critical support zone falls apart.
In a new strategy session, pseudonymous crypto trader Rekt Capital tells his 539,600 followers on social media platform
However, the trader says that the crypto king still has a chance to avoid such a scenario.
“Bitcoin fell to a low of $91,000 (blue) and even recovered shortly afterwards. But the price is back at the low level and even the bottom is deviating below it for the time being.
A daily close below $91,000 followed by a reversal into new resistance would be a signal [its] price in the range of $87,000 – $91,000.
However, this confirmation has not yet arrived and Bitcoin still has all day to hold $91,000 as support by closing above it daily. Bitcoin will remain in the $91,000-$101,000 range until confirmation proves otherwise.”
Rekt Capital goes further remark that while BTC reclaimed the $91,000 zone as support earlier today, it still needs to close the day above to confirm this.
“Bitcoin has recovered $91,000 in support. However, Bitcoin must close this way daily to confirm the chargeback. This just goes to show that a lot can change throughout the day and the upcoming daily close will be quite important in dictating the next move.”
Rekt Capital concludes his analysis in saying that Bitcoin is in the fourth week of a price correction. Historically, the trader says these types of corrections only last a month.
“The first price correction for Bitcoin is underway. They generally last 2-4 weeks. This current reversal has been going on for four weeks now, and history therefore suggests that this correction should be in its final stages.”
BTC is trading at $91,767 at the time of writing, down 3% on the day.
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Featured image: Shutterstock/Antonio Ognibene/Sensvector