Bitcoin Poised for Breakout as Analysts Eye Key Resistance Levels

Bitcoin is on the verge of a breakout after surpassing a downward trend, requiring a close above $86,900 for further rally potential. The analyst Rekt Capital stresses the importance of Bitcoin’s position relative to the 21-week EMA. Meanwhile, Ethereum must hold its current price range to potentially trigger a rally similar to mid-2023.

Crypto analyst Rekt Capital indicates that Bitcoin (BTC) is poised for a breakout after successfully overcoming a long-standing downtrend. Via social media platform X, Rekt Capital informed his 543,000 followers that BTC is confirming a potential breakout by closing above a downward resistance line. According to him, this crucial step could signal the beginning of a new technical uptrend for BTC.

Examining the weekly chart, Rekt Capital highlights that BTC must exceed a significant exponential moving average (EMA) to enhance the likelihood of a sustained price increase. He notes that Bitcoin is nearing the 21-week EMA resistance and requires a Weekly Close above approximately $86,900 to facilitate a breakout from the triangular pattern created by two Bull Market EMAs. Currently, BTC is trading at $84,463.

In comparison, Rekt Capital comments on Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, stating that it must maintain its existing price range to potentially initiate a rally reminiscent of 2023. Ethereum’s price has recently dipped into a historical demand area after losing its previous macro range of $2,196-$3,900.

Following this decline, Ethereum’s price peaked within a light blue demand area, setting new resistance at its ceiling. After further declines, ETH has potentially established the bottom of this area as support. To replicate the mid-2023 rally, Ethereum must remain above this support level. As of the current report, ETH is trading at $1,595.