Bitcoin (BTC) is currently at a critical juncture, having recently broken above its August highs and now challenging a long-term resistance zone.
According to analyst Rekt Capital, Bitcoin’s successfull August peak positions it to face more substantial resistance at the top of a downward channel. This level has historically been a problematic barrier for Bitcoin, as it has rejected previous bullish rallies.
Breaking Through the Resistance
If Bitcoin can close a weekly candle above this red resistance zone, it could signal a full-scale breakout, potentially reversing the current downtrend pattern.
Recent Price Action
Bitcoin re-entered the $67K price range on Tuesday for the first time in three months. While it experienced a brief dip to the $66K level, it quickly recovered and has maintained a price in the upper end of the $67K range.
Also Read: Italy To Boost Bitcoin Capital Gains Tax To 42% – What Investors Need To Know
Potential Price Correction
If Bitcoin fails to close above the red resistance zone, it faces a potential 30% price correction, which could drag it down to $47K. This is based on the historical pattern of progressively deeper pullbacks following failed attempts to break through the resistance.
Bitcoin is at a crucial moment, with the potential to either break out of a long-term downtrend or experience a significant price correction. Investors should closely monitor the price action and be prepared for potential volatility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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