Bitcoin (BTC) Price Must Close Above Crucial Support This Week or Risk Another Decline to $55k
- Barbara StreisandOriginal
- 2024-10-24 06:58:22436browse
Rekt Capital released an analysis of the current price action of Bitcoin (BTC). The weekly timeframe chart reveals a descending channel, characterized by black lines.
Bitcoin (BTC) price encountered a crucial support level this week, following a breakout from a descending channel. Failure to close above this support could lead to further declines.
Crucial Support Bitcoin Price Must Hold This Week or Risk Drop to $55k
Prominent crypto analyst Rekt Capital shared an analysis of Bitcoin's weekly timeframe chart, highlighting a descending channel (black lines) and its upper boundary, which has served as a resistance zone (red circles).
Recently, Bitcoin broke above this channel top, marking a significant breakout. This breakout is now being retested, with the price revisiting this previously resistant level to confirm it as new support (green circle).
For this retest to be successful, Bitcoin price must close above the channel top (black line) by the end of the week. This closing is critical for validating the breakout and ensuring that the channel top has transitioned from a resistance level to a support level.
During this retest process, minor price dips below the support line, referred to as “downside wicks,” are permissible. However, the key requirement is that Bitcoin must recover and close above this line within the weekly timeframe.
Should Bitcoin fail to maintain this support and instead close below the channel top, it would signal a failed retest. In such a case, a further decline could occur, potentially leading to a return to the consolidation zone, which extends to approximately $55,000.
The analysis provides valuable insights into key price movements and support levels that traders can monitor in their decision-making.
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