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Bitcoin’s early-week rebound was a welcome development, especially given the incredibly bearish moves of the past month. However, even with the price steadily rising, there is still some danger lurking that could stall the rally. As such, it has become significant for the price of BTC to hold onto some significant levels if the rally is to continue, and one crypto analyst has identified one of the major support levels for this one.
Bitcoin must maintain $55,881
Cryptocurrency analyst Rekt Capital took to X (formerly Twitter) to update his 500,000 followers on what’s in store for the price of Bitcoin. According to the cryptocurrency analyst, bitcoin price So far, we have managed to maintain an significant level, which is the area of bargain purchases.
The area of opportunity buying that Rekt Capital is referring to is the $53,250 level, which Bitcoin has held up to quite well. Despite the collapse, the fact that it has held up shows the strength of the digital asset. But even with that, the pioneering cryptocurrency still has a long way to go.
As the crypto analyst explains, the fact that Bitcoin price was holding in the buying opportunity zone was happening below the black Downtrending Channel. This means that bulls would need to maintain the momentum to continue the rally, and the best way to do that is to reclaim and hold the $55,881 level as support.
The good news is that Bitcoin has a weekly close above ~$53,250, which protects the very bottom of the bargain buy area (orange) that formed below the black descending channel
To capitalize on this momentum, Bitcoin would need to reclaim the $55,881 support level (blue) to try… https://t.co/pSYJZpk8E3 photo:twitter.com/Y3wPkLouRH
— Rekt Capital (@rektcapital) September 9, 2024
If this support holds, the crypto analyst predicts a possible continuation of the rally. But not just any continuation, one that would drive price over $60,000 once again. In this case, Bitcoin could be set on a path to a brand novel all-time high.
BTC bottoms out
Sentiment seems to be starting to improve as crypto analysts predict a rally for Bitcoin. Another analyst known as Cousin Crypto on X has he pointed out that the BTC price may soon reach its bottom, which is why there are several reasons.
Firstly, the cryptocurrency analyst points out that BTC price reached its first higher level in 200 days. Then, potential Fed rate cuts that could come next week could aid support Bitcoin price. The third point on the list is that the market is still in a state of Extreme Fear, which usually signifies market bottoms.
Taking all this into account, the analyst believes that the Bitcoin price is flashing bottom signals. According to the Rekt Capital analysis, if the Bitcoin price reaches a bottom, the next stage of growth could quickly push the price above $60,000.
Featured image created with Dall.E, chart from Tradingview.com
