Bitcoin’s price has been moving within a downward-sloping channel on the weekly chart. Recently, for about four weeks, Bitcoin dipped below the bottom of this channel but has now shown a strong recovery back into it. Historically, when Bitcoin rebounds from the bottom of this channel, it takes about 2-4 weeks to reach the top of the channel.
Popular analyst Rekt Capital discussed whether Bitcoin is preparing for a major upward move in its market cycle. If this pattern continues, Bitcoin could reach the upper boundary of the channel, around $67,000, as early as next week. However, previous attempts to break above this channel have resulted in short-lived spikes followed by pullbacks.Here’s a breakdown of his analysis:
Critical Resistance Levels:
$67,500: Breaking and closing above this level on the weekly chart would indicate a strong bullish shift and could lead to testing higher levels.
$71,500: This is the top of the current consolidation range. A weekly close above this level would signal the potential start of a new, powerful uptrend toward uncharted price territories.
Historical Patterns and Halving Events
After past halvings, Bitcoin has typically entered a consolidation (or “reaccumulation”) phase lasting around 150-160 days before breaking out into a strong uptrend. Given that the most recent halving occurred about 130 days ago, Bitcoin may still have around a month of consolidation before starting an upward move.
What Needs to Happen Next?
Bitcoin should continue to hold and build support around the $66,000 level to prepare for a move higher. Gradual and sustained growth is preferable over sudden spikes for a healthier long-term uptrend. Clearing resistance at $67,500 and then $71,500 with weekly closes above these levels would confirm the start of a new bullish phase.
