Analyst Warns Bitcoin Will Retrace Deep Enough To Convince Traders Bull Market Is Over – Here’s His Outlook

By The Daily Hodl January 21, 2024 In Bitcoin
Source: Rekt Capital/X

A closely followed crypto strategist believes that Bitcoin (BTC) will correct to a level that will make traders think a new bear market has begun.

Pseudonymous analyst Rekt Capital tells his 388,600 followers on the social media platform X that he believes the Bitcoin bull market is far from over.

But he thinks that Bitcoin is gearing up for a substantial correction that will make BTC bulls think twice about their current positions.

“Bitcoin will retrace deep enough to convince you that the bull market is over.

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And then it will resume its uptrend.”

Looking at Bitcoin’s weekly chart, Rekt Capital says that the correction will likely gather momentum if BTC ends the week below $41,325.

“BTC is losing the range low as support.

This is not confirmed yet, however.

A weekly close below the range low is needed as previously price would downside wick here.

Weekly close below the range low would kickstart the breakdown process.”

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Source: Rekt Capital/X

The trader also shares a chart suggesting that BTC may correct to around $35,000 before its April 2024 halving when miners’ rewards get cut in half.

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Source: Rekt Capital/X

While the analyst is short to mid-term bearish on BTC, he remains optimistic about the long-term outlook of Bitcoin, saying that the crypto king has two key catalysts that can push its price higher in the coming months.

“The BTC ETF (exchange-traded fund) is similar to the halving in the sense that both tend to have a long-term impact on price

It takes months for these pivotal catalysts to impact price

The gold ETF is a great example of how an ETF can impact price in the long term.”

At time of writing, Bitcoin is worth $41,570.

Generated Image: Midjourney

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