Bitcoin Market Analysis

A closely followed crypto analyst states that Bitcoin (BTC) may have formed a market bottom and is showing bullish signs.

Crypto trader Rekt Capital informs his 541,100 followers on X that Bitcoin is creating a bullish pattern with higher lows on the daily chart after a significant correction last week, which saw prices drop into the high $70,000 range.

> “Looks like the higher low is in.”

He highlights that Bitcoin might be turning bullish without fully addressing the CME futures gap in the $70,000 range. A CME gap refers to the difference between the Friday closing price and the Monday opening price of Bitcoin futures on the Chicago Mercantile Exchange.

> “Looks like Bitcoin indeed performed another downside deviation in order to form a higher low relative to last week’s low of ~$78,600 – without having to refill that lower partially filled CME Gap, as well.”

Rekt Capital indicates that Bitcoin’s recent significant correction aligns with price actions seen in both this and previous bull market cycles.

> “Back in mid-December 2024, Bitcoin needed a -25% pullback to reach the top of the CME Gap between $78,000 and $80,700. In other words, it needed to drop a similar amount to the retraces we saw occur around the post-halving period of -25% to -30%.”
> “This retrace isn’t just ordinary by standards of previous cycles where -30% retraces were the norm; it is ordinary by standards of this current cycle as well.”

He argues that these corrections might represent buying opportunities, warning against fears of a premature bear market that could hinder participation in the ongoing bull market.

> “Worries about a premature BTC bear market will stifle your participation in a bull market.”

To reignite bullish momentum, Rekt Capital identifies $93,500 as the key level Bitcoin needs to break on the weekly chart. As of this writing, Bitcoin is trading at $89,906.

Generated Image: DALLE3