How To Play Bitcoin Next
An unbiased exploration of future price action, based on Bitcoin still being in an old Bear Market or new Bull Market
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.
Daily Higher Highs, Weekly Lower High
Macro-wise, Bitcoin is consolidating between two market extremes: the $60,000 region (green demand zone, Range Low) acts as the floor while the $82,500 region (red supply zone, macro Range High) caps the upside,
Price is now building out a cluster at these highs (red circle), and what needs to be avoided here, if the bullish case is to develop, is distribution.
Because without confirmation of turning the red zone into newfound support, Bitcoin won't be breaking out from this range at all.
Hovering just beneath it, the signs to look for are Re-Accumulation and developing strength, and at the moment, that isn't quite what's showing up.
Bitcoin has rallied into new Higher Highs here on the Daily.
But on the Weekly, Bitcoin is still forming Lower Highs.
If Weekly Higher Highs do finally develop followed by a Post-Breakout Retest and then trend expansion, Bitcoin will have broken out from the overall $60-$80k range, rendering new lows very, very unlikely.
But price remains beneath the Range High resistance, still developing a Lower High, and still building this Daily cluster above $77k (orange horizontal).
Daily Higher Highs keep forming. And thus far, each micro-rally returned into the orange level.
After rejecting at local highs lately, if BTC were to retrace completely back into $77k, it would pose a significant question with regards to how much more buy-side strength remains at that level.
After all, if Bitcoin makes triple Higher Highs on the Daily but fully retraces them all, that wouldn't be a sign of strength.