Bitcoin - The July Uptrend

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 Re-Accumulation Range

The Re-Accumulation Range for Bitcoin has been one of the central ideas that we've been discussing here in the newsletter since even months before the Halving.

Because historically, a Re-Accumulation Range develops on the first rejection in the Pre-Halving period before transitioning into a Pre-Halving Retrace which then forms of the bottom of that Re-Accumulation Range.

These key levels are $71500 Range High and $60600 Range Low and Bitcoin will consolidate between these two levels for as long as it needs to in preparation for a breakout into the Parabolic Phase of the cycle.

Weeks ago, we talked about a rejection at the Range High:

Bitcoin then rejected and dropped to the Range Low:

And in fact, last week we talked about how the downside wick below the Range Low would constitute a bargain-buying opportunity because BTC tends to downside wick below the Range Lows of ReAccumulation Ranges before reversing to the upside.

Here is that crucial chart from last week:

And having discussed about how the bottom was close to being formed at this Range Low, Bitcoin is showcasing the very initial signs of curling up from here and once again gearing up for a move to revisit the ReAccumulation Range High over time:

Having protected the Range Low as support, Bitcoin has also formed a new Higher Low which is a sign of premium-buying behaviour at this support and is very clear especially on the Monthly timeframe.

Monthly Range

Last week we shared this chart:

Here's an update:

Bitcoin has formed not only a Higher Low in the downside wicks but also in the candle-bodied lows.

But perhaps most importantly, Bitcoin has solidified a support at its old All Time High area for another month:

In fact, Bitcoin has been holding this key area as support for four months straight.

For an area that only rejected price in the past (i.e. 3 years ago), it is remarkable to see price hold its own above this area and do so for 4 consecutive months.

But this price action isn't out of the ordinary, historically speaking.

Because BTC has a history of re-accumulating around the old All Time High area in preparation for a launch into the Parabolic Phase of the cycle:

BTC is doing the same right now as well.

Of course, this consolidation can continue for a few more months.

But it's important to realise that this consolidation will most likely precede trend continuation to the upside.

We just have to be patient and bargain-buy on deeper pullbacks so we're properly allocated for the ride.