Cryptocurrency analyst Rekt Capital recently discussed the performance of Bitcoin, pointing out the potential breakout process that the digital asset might be undergoing. He highlighted that Bitcoin has been stuck within a weekly range he termed Black-Black, following an 18% correction. The range was formed by the candle-bodied peak and the upside-wicking peak from 2021. Rekt Capital suggested that reclaiming the $69,200 Range High could signify the breakout of Bitcoin from this weekly range, potentially signaling the end of the pullback period.
It seems that Rekt Capital’s prediction has materialized as Bitcoin has surpassed the $69,200 level, triggering a breakout. According to the analyst, the first step in this breakout process is achieving a Weekly Close above the Range High. However, for a proper validation, Bitcoin might need to retest the range high as a new support level before continuing its upward movement. This retest would serve as the second phase to confirm the breakout from the weekly range.
Despite the breakout, Bitcoin experienced a slight drop in price, with the digital asset falling from around $71,000 to $69,200 in a few hours. At the time of writing, Bitcoin was trading at $69,500, reflecting a decline of about 1.29% in the past day. While the market cap of BTC also decreased by the same percentage, its daily trading volume surged by over 52%. This indicates that investors remain optimistic about Bitcoin, even amidst the recent retracement.
Looking ahead, analysts are optimistic about Bitcoin’s performance in April, historically a month of growth for the digital asset. Zia Ul Haque, the Founder of Open4Profit, highlighted the superior performance of April compared to March in terms of Bitcoin price increases. Haque mentioned that April has seen an average 14.2% price surge based on data from 2013 to 2024. With the upcoming halving event in April, Haque anticipates even better performance this time around. The pre-halving narrative leading up to the event on April 20th could attract significant attention to the market.
Bitcoin appears to be going through a breakout process, as identified by Rekt Capital. The recent price movement and market sentiment suggest that investors remain bullish on the digital asset. With the halving event on the horizon and a historical trend of growth in April, Bitcoin might continue to showcase strength in the coming weeks. However, as with any investment, it is important for individuals to conduct their own research and make informed decisions before entering the market.