Is Bitcoin On The Cusp of a Breakout?
Is It Breakout Time After This Pullback?
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.
The Weekly Downtrending Channel
Throughout the entire month of September, we've been covering Bitcoin's ascent with decent accuracy, first starting of with finding a base inside the bargain-buying region resting below the Channel Bottom (orange box):
Then, Bitcoin transitioned into a reclaim of the black Downtrending Channel support:
After which we focused on BTC later challenging the July Downtrend (dotted blue diagonal):
Which was breached early last week:
Before finally awaiting for a Channel Top revisit at $67,000 where price has recently rejected from:
Before we talk about this recent rejection and what is means for the overall trend, it's worth noting that Bitcoin has experienced the best September of all time, getting close to ending the month at +7%:
Yes, Bitcoin has dipped -5% since the rejection but it shouldn't distract you from the fact that BTC has produced its all-time best ever September monthly return at +7%.
Moreover, it's important to emphasise that on this recent run-up, Bitcoin formed its first Higher High since late July:
What does this therefore entail?
Bitcoin recently formed a new Higher High and performed a Weekly Close above the late August resistance of $64300 (green) which now means that BTC will try to reclaim this old resistance into new support.
There may be downside volatility on this retrace but if BTC is able to Weekly Close above this green level, then price will likely re-challenge the Downtrending Channel top (black) in early October.
And what if BTC fails this retest? What would be the levels to watch out for?