A widely followed crypto analyst is alerting investors that Bitcoin (BTC) could plunge even further if a critical support zone falls apart.
In a new strategy session, pseudonymous crypto trader Rekt Capital tells his 539,600 followers on the social media platform X that the crypto king could fall below $90,000 if it fails to hold the $91,000 level as support.
However, the trader says the crypto king still has a chance to avoid such a scenario.
“Bitcoin dropped into the range low of $91000 (blue) and even briefly rebounded from there. But price is once again back at the range low and even downside deviating below it for the time being.
A daily close below $91,000 followed by a turning of it into new resistance would send [its] price into the $87,000-$91,000 range.
However, this confirmation is not in and Bitcoin still has the entire day to preserve $91,000 as support by daily closing above it. Bitcoin remains in the $91,000-$101,000 range until confirmation proves otherwise.”
Source: Rekt Capital/X
Rekt Capital goes on to note that while BTC reclaimed the $91,000 zone as support earlier today, it still needs to close out the day above it to confirm it.
“Bitcoin has reclaimed $91,000 as support. However, Bitcoin needs to daily close just like this to confirm the reclaim. This just shows that lots can still change throughout the day and that the upcoming daily close will be quite important in dictating the next move.”
Source: Rekt Capital/X
Rekt Capital concludes his analysis by saying that Bitcoin is in the fourth week of a price discovery correction. Historically, the trader says these types of corrections only last a month.
“The first Bitcoin price discovery correction is in progress. They generally tend to last 2-4 weeks. This current retrace has been going on for 4 weeks now lengthwise, history therefore suggests this correction should be in its final stages.”
BTC is trading for $91,767 at time of writing, a 3% decrease on the day.
