‘Fake Breakdown’? – Crypto Analyst Says BTC About to Challenge Downtrend After Showing Stability

By The Daily Hodl July 10, 2024 In Bitcoin
Source: Rekt Capital/X

A widely followed crypto analyst thinks Bitcoin (BTC) could be on the verge of stabilizing after a sizeable correction.

Pseudonymous crypto trader Rekt Capital tells his 482,500 followers on the social media platform X that BTC is showing positive signs of life after its most recent drop.

“Bitcoin is showcasing some initial signs of stability after the crash

And in doing so, it is creeping closer to the Downtrend (light blue)

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This Downtrend will be challenged if the Bullish Divergence plays out.”

Source: Rekt Capital/X

According to the analyst, BTC’s price breakdown is now showing signs that it’s finding support near the $57,000 mark.

“Bitcoin has managed to reclaim the purple level as support, despite the fake-breakdown.”

Source: Rekt Capital/X

Finally, the analyst points out that BTC’s latest pullback is the second deepest of this bull run so far.

“This retrace is not just the deepest in the cycle thus far

But it is officially the second-longest retrace in the cycle as well (49 days).”

Source: Rekt Capital/X

BTC is worth $57,480 at time of writing, up 3% on the day.

Last week, Rekt Capital suggested that traders may need to wait till next fall before BTC reaches its bull cycle peak.

“In the 2015-2017 cycle, Bitcoin peaked 518 days after the halving. In the 2019-2021 cycle, Bitcoin peaked 546 days after the halving.

If history repeats and the next bull market peak occurs 518-546 days after the halving… That would mean Bitcoin could peak in this cycle in mid-September or mid-October 2025.”

Generated Image: Midjourney

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