A well-known cryptocurrency analyst has updated their prediction for Bitcoin (BTC), claiming that after surging this week, Bitcoin is about to confirm a bull market.
Following this week's surge, the anonymous cryptocurrency trader Rekt Capital reports that Bitcoin is about to confirm a new bull market.
#BTC is attempting to break beyond the multi-month downtrend line on the Weekly TF
— Rekt Capital (@rektcapital) January 13, 2023
Weekly Close above the trendline likely confirms the breakout
But most important trendline to break to confirm a new Bull Market is the Macro Downtrend on the Monthly TF$BTC #Crypto #Bitcoin pic.twitter.com/Rq9fiwEUyb
They do not, however, rule out a price decline before that because it could take many months to break significant bear market trend lines.
"BTC is in a transitional phase. It’s bordering on the bear market ending and new bull market beginning. This phase could take a few months and new lows can’t be entirely ruled out just yet. But it’s great to see there is finally light at the end of the tunnel."
The trader also examines the Relative Strength Index (RSI), a momentum indicator for assets, to determine whether the dominant cryptocurrency is displaying bullishness. The RSI must go into the last bear market's RSI bottom zone, according to the analyst, to confirm the upward trend.
The analyst explains that the Monthly BTC RSI also departs from its decline channel. The previous bear market bottom area (green) needs to be reclaimed by BTC RSI as support in order to confirm the bullish trend; in the meantime, it can theoretically operate as resistance until it is.
Another market indicator, according to Rekt Capital, is if Bitcoin can surpass the psychological price barrier of $20,000, which served as support for the majority of last year. They assert that during the present rally, $20,000 might act as a barrier. At the time of writing, Bitcoin is worth $19,437.
"BTC is slowly but surely approaching the psychological level of $20,000 $20,000 acted as multi-month support for a lot of 2022 and soon may act as resistance. Macro-wise, BTC is inside the $13,900-$19,500 Monthly range (blue-blue)."
