While there was a rise in Bitcoin and altcoins before the FED decision, investors were in a dilemma about whether this rise was a bull rally or a bull trap.
At this point, popular analyst Rekt Capital evaluated Bitcoin.
Pointing out that the monthly closing will be important in Bitcoin, Rekt Capital stated that BTC tended to turn its monthly supports into resistances last year.
In this context, the analyst stated that $ 27,100 was previously an important support level for BTC, and said that a monthly close above $ 27,100 could bring this level closer to regaining support.
However, a monthly close below $27,100 will confirm this level as new resistance and make it clear that this rise is a relief rally.
“The upcoming Monthly Candle Close on Bitcoin will be very important.
Because last year BTC showed that it tends to produce long reversal wicks as it turns old monthly supports into new resistances.
These wicks can be up to +8% in length.
A +7% bullish wick above $27,100 here and a Monthly Close above $27,100 would suggest that the price could move closer to reclaiming this recently lost level as support.
However, if there is a wick above $27,100 and a Monthly Close below $27,100, it will probably mean that $27,100 will be confirmed as the new resistance and this upward move is a relief rally.”
This rise is likely to be a relief rally where $27,100 is confirmed as new resistance before dropping to the $23,000 region.
“If $27,100 is lost, the next major monthly support could be 23,000.”
The upcoming Monthly Candle Close will be pivotal
Because the past year or so has shown that $BTC tends to produce long upside wicks when turning old Monthly supports into new resistances
These wicks can be up to +8% long
A +7% upside wick beyond ~$27100 would see price… https://t.co/rkRsoC1ILt pic.twitter.com/rqfCueyDIp
— Rekt Capital (@rektcapital) September 18, 2023
In another post, Rekt Capital pointed out that Bitcoin may be forming a “Bearish Bitcoin Fractal”.
Stating that Bitcoin has a history of forming a Double Top by developing a relief rally for a new low/high level, the analyst also predicted what the possible scenario for BTC would be if this fractal formed.
“It appears that Bitcoin has a history of forming a Double Top, developing a relief rally to form a new Low/High before breaking out.
If this fractal occurs, how will it reflect on the current 2023 cycle? The possible answer to the question may be as follows:
‘Bitcoin experiences a relief rally before breaking $26,000 to activate the bearish fractal. And BTC may rise to $29,000 on this relief rally.”
Looks like Bitcoin has a history of distorting Double Tops by developing a relief rally to form a new Lower High before finally breaking down
How would this translate into this current 2023 cycle?
Relief rally to even as high as ~$29,000 before revisit of and breakdown… pic.twitter.com/8G3fC4hzlh
— Rekt Capital (@rektcapital) September 18, 2023
Bearish Bitcoin Fractal
Is Bitcoin in Phase A-B?$BTC #Crypto #Bitcoin pic.twitter.com/Y0mOUaH5vO
— Rekt Capital (@rektcapital) September 18, 2023
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Source: https://en.bitcoinsistemi.com/is-bitcoins-rise-a-relief-rally-what-are-the-important-levels-to-follow-for-btc/