Bitcoin and Altcoins - Planning the Next Few Weeks
Altcoins and the BTC Price Discovery Correction
Welcome to the Rekt Capital Newsletter, a resource for investors who want to better navigate the crypto markets with the help of cutting-edge crypto research and unbiased market analysis.
Bitcoin's Short-Term Ranges
In recent weeks, we first talked about the first short-term range for Bitcoin:
And then the second:
And we discussed how the $91000 Range Low would likely act as support to confirm this $91000-$10000 region as a newfound range for price:
Bitcoin has since successfully retested the Range Low at $91000 as support and broken beyond the Lower High resistance.
In fact, this Lower High has been retested as new support very recently and if BTC is able to Daily Close above the Bull Flag bottom of ~$96400, then this recent retest will end as a downside wick and BTC will resynchronise with Bull Flag consolidation.
However, if the Bull Flag bottom is not reclaimed, then it may act as resistance and pose a threat to the recent Lower High retest.
Bitcoin would need to invalidate the Lower Highs that are evident on the RSI to shake-off the mounting weakness in the price action:
The RSI breaking the Daily Lower Highs would be a transition into strength which would translate favourably into the price action.
It's only the Daily timeframe that is showing signs of weakness, however the RSI is downtrending and cooling down in this period.
If the RSI is able to further cooldown and/or break the Lower High, then BTC may have another leg left in it.
It will be worth observing in the coming days how BTC continues to Daily Close relative to the price action Lower High, the Daily prospective Bull Flag as well as how the RSI will continue to behave relative to its own Lower Highs.
Price Discovery Uptrends & Corrections
Bitcoin is firmly in its Parabolic Phase of the cycle and it's only the very beginning of Month 2 in Price Discovery.
Which just goes to show how early BTC is in its current phase of the cycle.
However, there will be pullbacks along the way to new All Time Highs and that's why it is worth keeping in mind the first Price Discovery Correction that is slowly looming large.
Historically, it is between Weeks 6 and 8 where BTC tends to pullback quite deeply and BTC has just begin Week 5.