Bitcoin (BTC) is consolidating above $67,000 after facing rejection at the $70,000 mark, while the market anticipates a potential breakout.
Indeed, crypto trading expert Rekt Capital believes that Bitcoin has room for a breakout, but the cryptocurrency needs to clear specific barriers.
Particularly, in a post on X (formerly Twitter) on June 1, the expert stated that Bitcoin’s path to recovery hinges on ceasing its current pattern of forming lower highs.
Rekt Capital’s analysis highlighted a consistent rejection of Bitcoin at decreasing price points, a trend that has characterized the cryptocurrency’s performance over recent months.
He noted that the price levels of $71,600 and around $70,000 have acted as resistance in Bitcoin’s recent trading history. These zones have repeatedly capped Bitcoin’s attempts to rally, confirming them as significant barriers that must be overcome for a bullish reversal to materialize.
“Bitcoin continues to reject at lower and lower prices, forming a series of Lower Highs. First Bitcoin rejected at ~$71,500. Then, price confirmed the blue square as a local topping area, as per recent history. When this series of Lower Highs ends, that is when Bitcoin will start to pick back up again,” he said.
Implication of Bitcoin’s price movement
In technical terms, a lower high occurs when a peak is lower than the preceding peak, signaling a bearish trend as sellers increasingly dominate the market. The identification of successively lower highs at the $71,500 mark, followed by subsequent rejections at progressively lower price points, underlines a persistent downward pressure on Bitcoin’s price.
Based on the analysis, when Bitcoin establishes a higher high, it would indicate a shift in market sentiment, potentially paving the way for renewed bullish activity.
On March 26, the expert also pointed out that if Bitcoin successfully retests the $69,170 area, it will enable further upside.
#BTC
Successful retests at the orange area (green circles) are what enable further upside
But the retests dating to March only fed into local top structures, however (blue squares)
History suggests this tendency may continue, as Bitcoin rarely breaks to new All Time Highs… pic.twitter.com/UVZ8xvFfXG
— Rekt Capital (@rektcapital) May 26, 2024
Notably, Bitcoin failed to maintain the momentum established early in the week after the crypto surged to $69,000 on Monday. However, bulls could not sustain the upward trajectory as the crypto retracted. This coincided with the hacking of Japan’s crypto exchange DMM Bitcoin, which lost over $300 million in Bitcoin.
Overall, Bitcoin remains sluggish, failing to make a significant move in either direction.
Bitcoin price analysis
Bitcoin’s consolidation is evident in the asset’s weekly timeframe, which reflects a correction of over 2% during the period. In the last 24 hours, Bitcoin is down over 0.1%, trading at $67,485 by press time.
In the meantime, the challenge is on Bitcoin bulls to help the asset exit the current consolidation so that it can have a real shot at reclaiming a new record high.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
