Bitcoin at Crossroads: Weak Rebounds and Potential Breakdowns in Focus

The cryptocurrency market, particularly Bitcoin, has always been the subject of intense scrutiny and speculation. According to Rekt Capital, a crypto analyst, the technical uptrend supporting Bitcoin’s price has faltered. This shift in market dynamics calls for a closer examination of Bitcoin’s current standing and potential future trajectory.

#BTC

There we go – there was reason to believe the technical uptrend was weakening and it has finally been lost as support

Turn this blue technical uptrend into new resistance upon rebound would pose further sell-side pressure on the ~$41200 (black)$BTC #Crypto #Bitcoin https://t.co/r5uxVNlMWT pic.twitter.com/yRR0ci5Hjh

— Rekt Capital (@rektcapital) January 19, 2024

At press time, BTC traded at $41,362.87, with a market capitalization of around $835.45 billion, per CoinStats. Despite a 24-hour trading volume of $20.84 billion, the digital currency has seen a minor decline of 0.38%.

BTC/USD 1-day price chart (Source: CoinStats)

Moreover, recent market activities suggest that Bitcoin struggles to maintain its previous momentum. Historically, Bitcoin has shown resilience by bouncing back from lower trend lines, demonstrating robust rallies. However, the latest rebound from the blue technical uptrend line has been notably weak.

Furthermore, Bitcoin’s behavior in response to its higher low trend line is crucial. A downside wick below this trend line, followed by a daily close above it, could potentially salvage the situation. As further highlighted by Rekt Capital, a daily candle close below this higher low likely initiates a breakdown process, signaling a bearish turn for Bitcoin.

#BTC has indeed dropped into the Weekly Range Low after flipping black into new resistance

Weekly Close below the Range Low would be bearish and could begin the breakdown process$BTC #Crypto #Bitcoin https://t.co/ZIgcdyyiIe pic.twitter.com/SXQ5BfQ4Ds

— Rekt Capital (@rektcapital) January 19, 2024

Adding to these concerns is Bitcoin’s interaction with its weekly range. After transforming the previous support level into a new resistance zone, BTC has recently fallen into the weekly low range. If Bitcoin closes the week below the range low, it would confirm a bearish outlook and kickstart a breakdown process.

Concurrently, the situation has become precarious when considering Bitcoin’s shifting support and resistance levels within the weekly range. The critical point is whether the current support level turns into resistance. If this occurs, Bitcoin could descend into the red range. This juncture will be telling, as it will reveal whether Bitcoin is poised for a range breakdown.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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