Cryptocurrency analyst Rekt Capital recently discussed the potential breakout of Bitcoin (BTC) from a weekly range, signaling a possible upswing. The analyst identified a weekly range known as Black-Black, where Bitcoin has been trading since experiencing an 18% correction. This range was created by the candle-bodied peak and the upside-wicking peak from 2021. Rekt Capital suggested that reclaiming the $69,200 Range High could indicate a breakout from this range and mark the end of the pullback period. BTC has indeed surpassed the $69,200 level, triggering a breakout activity.
According to Rekt Capital, the first phase of the breakout process is a Weekly Close above the Range High. However, for a proper validation of the breakout, BTC might need to retest the range high as new support by diving into it. This retesting process would be the second phase of confirming the breakout from the weekly range. The recent drop in Bitcoin’s price has raised speculation about its next movement, with BTC opening the day at $71,000 and later falling to $69,200. Currently, Bitcoin is trading at $69,500, showing a 1.29% decline in the past day.
Despite the price drop, Bitcoin’s market cap has also decreased by the same percentage in the last 24 hours, while the daily trading volume has increased by over 52%. This suggests that investors are still optimistic about the digital asset despite the retracement. With Bitcoin’s halving event approaching, investors are looking forward to its potential impact on BTC. Many analysts believe that Bitcoin could perform robustly in April, as historical data shows significant growth during this month. Zia Ul Haque, the Founder of Open4Profit, highlighted the average 14.2% increase in price witnessed in April over the years. He anticipates an even better performance this April due to the upcoming halving event on April 20th.
The recent breakout activity in Bitcoin and the anticipation surrounding the halving event suggest positive momentum for the digital asset. While market volatility and price fluctuations are inherent risks in cryptocurrency investing, many analysts remain optimistic about Bitcoin’s potential growth in the coming month. It is essential for investors to conduct thorough research and analysis before making any investment decisions in the crypto market.