As Bitcoin (BTC) attempts to hold the $74,000-$75,000 area, an analyst suggested that the flagship crypto could see another 10% rally toward a key area, but warned that this level could be the ceiling.
Bitcoin Double Bottom Breakout Targets Key LevelIn a Wednesday analysis, crypto analyst Rekt Capital shared an outlook for Bitcoin’s potential rally, as it holds the $73,000-$74,000 area as support for the first time in a month.
According to the analyst, if Bitcoin can weekly close above the 2024 ATH, located around $74,000, then the price could move into the high $70,000. “Until that confirmation, however, price will continue to be sandwiched between 2021 and 2024 old All Time Highs,” he added.
If it confirms a breakout from this formation, the price could rally toward the $81,000-$82,500 area in a Measured Move. Nonetheless, the analyst warned that, given the phase of the market cycle we are currently in, the price will likely develop a macro market structure that “will appear sufficiently bullish only to ultimately fail over time.”
“The failure could occur by virtue of rejecting from the Double Bottom resistance, by failed post-breakout retest to register a fake-breakout, or by falling short of a Measured Move once the breakout is confirmed.”
BTC Resembles 2014 Breakdown“Furthermore, Bitcoin tends to build major consolidation periods on breakdowns from Macro Triangles. In 2018 and 2022, these major consolidation periods developed at Bear Market bottoms,” Rekt Capital explained.
“Whereas in 2014, Bitcoin built two such periods: just beneath the Macro Triangle it broke down from, and then later at its respective Bear Market Bottom,” he continued.
The analyst concluded that if history repeats, BTC’s current consolidation could precede additional downside, and another major consolidation period could develop during the bear market bottom.
