Bitcoin Approaching Peak Worry and Doubt?
The stronger the fear, the greater the opportunity
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 Monthly Bull Flag
The Bitcoin Monthly Bull Flag is certainly experiencing a volatile post-breakout retest:
But price has already been at these levels this month and has been here a few times.
The daily noise isn't as important as the higher timeframe signal.
If BTC indeed Monthly Closes above $96700 then that will register as a successful post-breakout retest.
In the meantime, the Bull Flag Bottom continues to support price and the three-month trend of a Higher Low at the downside wicks still exists.
Throughout the majority of February, BTC has been meandering around this key level of $96700 and we'll soon find out what the confirmed signal will be.
The Weekly Range
Last week, we spoke about how Bitcoin needed to register a Weekly Close above the Higher Low to reclaim it as support:
And despite a bit of a rally last week, ultimately Bitcoin Weekly Closed below the Higher Low:
Technically, Bitcoin has turned the Higher Low into a new resistance as a result, thus enabling trend continuation to the downside into lower levels of the range.
Last week, Bitcoin tagged the Weekly Range Low of ~$93500 and this week BTC is getting quite close to another retest.
But the main takeaway is that the Weekly Range Low needs to see continued Weekly Candle Closing above the level to preserve the range, with scope for downside deviation below the Range Low in the form of downside wicks.