Bitcoin (BTC) Daily Chart Structure Is Showcasing Some Initial Signs of Stability After the Crash

Bitcoin (BTC) daily chart structure is showing its first signs of stability after the crash seen last week, according to the trader who identifies himself as Rekt Capital.

Trader Rekt Capital highlights Bitcoin's (BTC) approaching a crucial resistance and the significance of a bullish divergence scenario playing out.

Key Takeaways:

- BTC is showing initial signs of stability after last week's crash.

- BTC is getting closer to its previous "June downtrend" line.

- This resistance will be challenged if a bullish divergence scenario plays out.

After Bitcoin encountered a daily price rejection at the $58,350 level on July 7th, a trader known as Rekt Capital highlighted the BTC price action in an X post, showing that the coin is getting closer to its previous “June downtrend” line.

According to the trader, this resistance will be challenged if a bullish divergence scenario plays out.

This follows Rekt Capital's analysis of Bitcoin's daily chart, which indicates that the coin failed to close above the $58,350 price level on July 7th, leading to a price rejection at this point. However, BTC managed to maintain the $56,750 level as support.

Moreover, zooming out to the weekly time frame, Rekt Capital highlighted the importance of a closure above $60,600 for Bitcoin to regain upside momentum.

“On this recent rally, BTC has a chance to reclaim $60600 as support to confirm last week’s extensive downside as a fake breakdown. Crucial days ahead,” the trader noted.

Furthermore, looking at a larger time frame, Rekt Capital pointed out the importance of a quarterly closure above the $58,790 price zone.

“We’ll see upside & downside beyond & below this level over the coming months. Most important thing will be how BTC Quarterly Closes relative to this level,” he added.

In related news, another trader, known as Altcoin Sherpa, took to X to comment on Bitcoin's daily chart, describing it as "not great."

The trader shared with his followers today that lower highs and a lower low were recently formed on the daily chart.

“I'd want to see price strongly get above 64k before I call this 'ok'. More just wait and see before calling this a reversal,” Altcoin Sherpa concluded.