July 15, 2024
1 Solar System Way, Planet Earth, USA
Crypto

Bitcoin needs a weekly close above $60,600 to avoid further correction

Key points

  • Bitcoin is approaching a 26% 46-day retracement, its deepest pullback of the current cycle.
  • A weekly close above $60,600 is crucial for Bitcoin to maintain its current accumulation range.

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Bitcoin (BTC) is currently in its deepest pullback of the current cycle, approaching a 26% retracement in 46 days. According to a Recent video According to the trader identified as Rekt Capital, the $58,000 price area could be volatile throughout the quarter, serving as a base for BTC to take off into an upward movement.

“We are still trying to build that base. We are capturing liquidity at lower prices, so we need buyers to be attracted to the market, to buy in the market, to attract that buying pressure at lower price levels to initiate a reversal above $58,800,” the trader explained.

Bitcoin quarterly candles. Image: Rekt Capital/TradingView

However, the weekly timeframe still presents important signals to watch. Rekt Capital pointed out the various accumulation ranges formed in this cycle, and all of them saw their support broken for a brief moment as traders sought liquidity. However, the weekly candle closed within the range on all occasions.

“Therefore, it is very important that the price, monthly or at least weekly, closes above $60,600 before the weekly candle closes. By the end of the week, we need to see the Bitcoin weekly candle close above $60,600 to essentially protect this range,” he added.

It is worth noting that if Bitcoin fails to do so, the previous support will turn into resistance. A run will then begin over the next two weeks, in which BTC must overcome the $60,600 resistance and stay above it.

Moreover, on the daily time frame, Bitcoin is reaching lower regions below its usual groups. Rekt Capital highlights that BTC must convincingly reclaim the $56,500 region for further price development within the $57,000 to $65,000 price range.

Bitcoin daily chart (annotated). Image: Rekt Capital/TradingView

If Bitcoin meets all these requirements, a new price cluster could form in a higher range between $65,000 and $73,000. Thus, the pattern of previous halvings of consolidation followed by a parabolic upward move could be in play.

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