Bitcoin Is On The Verge Of Confirming A Bull Market After The First Rally In 2023

Key Points:

• Bitcoin is on the verge of confirming a bull market after rallying this week.
• However, it may take many months to break important bear market trend lines and not rule out a price drop before then.

A well-known cryptocurrency expert has updated their forecast for Bitcoin (BTC), saying that Bitcoin is on the verge of confirming a bull market after rallying this week.

After surging this week, the pseudonymous crypto trader Rekt Capital informs that Bitcoin is on the cusp of confirming a new bull market.

However, they caution that it may take many months to break important bear market trend lines and do not rule out a price drop before then.

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 looks at Bitcoin’s Relative Strength Index (RSI), which is a gauge of asset momentum, to see if the king cryptocurrency is showing bullishness. According to the expert, the RSI must climb into the previous bear market RSI bottom zone to validate the rising trend.

As explained by the analyst, Monthly BTC RSI also breaks out from its downtrend channel. To confirm the bullish trend, BTC RSI needs to reclaim the previous bear market bottom area (green) as support in the interim, until it is reclaimed, it could technically act as resistance.

According to Rekt Capital, another market signal to monitor is if Bitcoin can break over the psychological price barrier of $20,000, which served as support for most of last year. They claim that $20,000 might operate as a barrier during the current rally. 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).

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Thana

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