Josh from Crypto World pointed out that Bitcoin and Ethereum are on the verge of confirming a major breakout on larger time frames. However, a new warning signal on smaller time frames for Bitcoin indicates a potential shift in price patterns.
The analyst discussed the recent Bitcoin ETF news, noting a significant outflow from the Grayscale Bitcoin Trust, potentially due to Genesis BTC liquidation. This selling pressure from Grayscale could temporarily cap Bitcoin’s price in the short term.
Moving to Bitcoin’s technical analysis, Josh discussed potential breakout levels and historical trends. Bitcoin’s weekly chart suggests a breakout above $50,000, which could lead to new all-time highs post-halving historically. Short-term indicators like RSI and MACD suggest a slight loss in bullish momentum but remain overall bullish.
On Ethereum, Josh highlighted a bullish trend on the weekly timeframe, aiming for a breakout above $2,700. Ethereum’s current pullback could test support levels around $2,680-$2,720.
Bitcoin Halving Predictions
Analyst Rekt Capital also opened up about the potential scenarios surrounding Bitcoin’s price movement leading up to the halving event, stressing historical patterns observed around previous halvings. They noted a tendency for retracements to occur around the time of the event itself, prompting a discussion on potential price tops and bottoms in the pre-and post-halving periods.
Historically, Rekt Capital explained, macro downtrend breaks often signal the onset of a new uptrend leading up to the halving event. They showed how previous cycles have seen reaccumulation ranges develop, followed by pre-halving retracements. Drawing parallels across cycles, Rekt Capital explained the importance of understanding historical resistance levels to anticipate potential price tops in the current cycle.
Moreover, Rekt Capital examined historical support levels to identify potential bottoming-out points during pre-halving retracements. The importance of key support levels, such as the generational level around $35k, which tends to act as a pivotal support across time.
