A widely followed crypto analyst says that Bitcoin (BTC) could be brewing a repeat of its 2019 breakout after forming a similar pattern over the last few weeks.
In a new strategy session, pseudonymous crypto trader Rekt Capital tells his 45,000 YouTube subscribers that the king crypto’s current market structure looks very much like it did in 2019 before BTC sparked a big rally to the upside.
“Let’s start off with [the 2019 market structure] being very similar to [the 2023 market structure]. I mean, it’s very small [now] compared to [the past], but nonetheless, higher lows and an ascending triangle for multiple weeks and then a breakout…
So are these comparable? Market structure-wise and time-wise, they are comparable, and they are comparable also in the breakout rally that we saw get generated from that ascending triangle, 27% and 21%.”
The strategist goes on to tell his 333,700 Twitter followers that even though Bitcoin’s current surge may look like a FOMO [fear of missing out] rally, he says that the real macro FOMO hasn’t begun.
“The BTC monthly candle is up around +38% right now. In the short term, people are FOMOing into BTC.
But in the grander scheme of the new cycle, this is hardly FOMO Macro .
FOMO will begin from $69,000 on the way to new all-time highs.”
The trader cautions investors that in the short term, BTC may not be ready to blast back into a new bull market just yet. He says Bitcoin faces big resistance around the 200 week moving average (MA) and could end up faking out BTC bulls before dipping again.
“It’s worth noting that a fakeout scenario here could occur for BTC as the 200-week MA is hovering just above ~$23,400.
And so, 200-MA may act as resistance in the short-term.
Generally, BTC needs to reclaim the 200MA as support for further bullish momentum.”
Bitcoin is changing hands for $22,770 a time of writing.
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Source: https://dailyhodl.com/2023/01/23/bitcoin-repeating-2019-breakout-crypto-analyst-looks-at-btc-after-big-bounce-from-lows/