One of the most prominent cryptocurrency analysts believes that strong technical indicators are pointing towards a significant breakout for Bitcoin (BTC).
According to the pseudonymous analyst Rekt, Bitcoin’s monthly candle has successfully broken past a critical resistance level. Rekt has 340,000 followers on Twitter.
According to Rekt, the recent breakthrough that Bitcoin saw appears to be comparable to other moves that have occurred in the past and have traditionally come before longer-term gains.
“Take note of how BTC macro downtrend breakout candles have, on average, formed upside wicks” (yellow circles).
This particular monthly breakout candle does not resemble any of the others.”
According to the well-known analyst, the shape of the most recent monthly candle indicates that Bitcoin may be in a position to confirm the beginning of a new bull market by the time March comes to a close. According to Rekt, the current state of Bitcoin’s market indicates that we are most likely in the “calm before the storm” for the cryptocurrency.
“On [the following] Saturday, the monthly candle for Bitcoin will have closed above the macro downtrend, confirming the beginning of a new bull market…
With only a few days left, there is still a good chance that Bitcoin will successfully execute a bullish break of the macro downtrend and monthly close above the critical resistance.
There is the potential for a price decline in the short term, but in the medium to long term, Bitcoin is positioning itself for a new macro uptrend.
According to Rekt, Bitcoin’s price pattern is evolving into an inverse head and shoulders, which is a chart pattern that generally indicates a delayed trend reversal toward the upside.
The inverse head and shoulders pattern in bitcoin performed exceedingly well.
Since reaching the optimal target of $20,000 to form the right shoulder, Bitcoin has seen a rally of +40%.