Bitcoin - Is a New Breakdown In Progress?
Old supports are becoming new resistances, one by one
Welcome to the Rekt Capital Newsletter, a resource for investors who want to better navigate the crypto markets with the help of cutting-edge crypto research and unbiased market analysis.
Bull Market Floor, Now Bear Market Ceiling
Higher timeframes carry stronger signals and the Monthly chart is now offering one that deserves full attention.
Throughout May, price was in genuine contention to Monthly Close above the 2024 All Time Highs at $73,884 (blue horizontal) and establish that level as support.
That window has now closed and the retest has failed.
Bitcoin marginally closed below it and on the very first day of June, price is already wicking upward into $73,884 from below.
That kind of upside wick into a level that was just lost is not what you want to see from a bullish standpoint.
The full psychological arc of this old 2024 All Time High level of ~$74k is worth mapping.
It began as resistance in the early Bull Market.
It then became a trend reversal zone in early 2025, establishing a floor that enabled the rally to All Time Highs.
Now, having failed to hold as support last month, it is being retested from the bearish side, threatening to complete the cycle and become a ceiling once more.
That transition — resistance to support to failed support to new resistance — is precisely how market psychology realigns as conditions shift from a Bull Market to a Bear Market.
The level hasn't changed. The market's relationship to it has.
Should $73,884 keep acting as resistance, the 2021 All Time Highs at $69,185 (blue horizontal) become the next logical destination for a retest.
That level has its own history.
It was resistance, then a retesting zone, then briefly support, before price downside deviated below it and never meaningfully reclaimed it.
The pattern is instructive: when the 2021 All Time Highs acted as support, they produced a rally of significant magnitude.
The next visit to that level is unlikely to generate the same response.
Historical demand weakens with each revisit, and a lesser magnitude rally would be the more probable outcome.