A crypto analyst known for accurately calling Bitcoin’s pre-halving correction last year believes that BTC needs to reclaim a key technical indicator as support to regain bullish momentum.
Pseudonymous crypto strategist Rekt Capital tells his 542,600 followers on the social media platform X that BTC appears to be mirroring its price action in 2021 when Bitcoin consolidated between two key exponential moving averages (EMAs) on the weekly chart.
According to Rekt, Bitcoin must convert the 21-week EMA into support to trigger the resumption of bullish price action.
“Earlier this week, Bitcoin rejected from the 21-week EMA resistance (green).
As a result, Bitcoin continues to consolidate between these two Bull Market EMAs, much like it did in mid-2021.
Nonetheless, for the future, the key confirmation signal for a breakout will be a weekly close above the green EMA followed by a post-breakout retest of it into new support (light blue circle).”
At time of writing, Bitcoin is trading for $82,536.
Looking at the altcoin market, the trader says he expects alts to continue underperforming Bitcoin based on the BTC dominance (BTC.D) chart, which tracks how much of the total crypto market cap belongs to the flagship digital asset.
According to Rekt, BTC.D could hit a crucial resistance level that has remained intact since 2017 before losing steam. Once that happens, Rekt predicts that a real altcoin season will come to fruition.
“BTC Dominance.
If history repeats, the real Altseason everybody is waiting for would begin once Bitcoin Dominance rejects from 71% (red).”
A bearish BTC.D chart suggests that altcoins are growing in value faster than Bitcoin. At time of writing, BTC.D is hovering at 62.26%.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
