Bitcoin (BTC) Could Remain in a Downtrend Unless It Flips This Key Level into Support, Crypto Analyst Says

Pseudonymous crypto trader Rekt Capital tells his 482,600 followers on the social media platform Twitter that a bullish Bitcoin reversal could be confirmed if the crypto king convincingly flips the descending trendline into support.

A popular crypto analyst is laying out two key events that could determine whether Bitcoin (BTC) will continue its downtrend.

The pseudonymous crypto trader known as Rekt Capital tells his 482,600 followers on the social media platform X that a bullish Bitcoin reversal could be confirmed if the leading crypto decisively flips the descending trendline into support.

“Bitcoin needs a daily close followed by a successful retest of the downtrend as new support to fully confirm a breakout beyond this downtrend.”

The analyst also notes that Bitcoin is displaying bullish divergence on the daily time frame with the Relative Strength Index (RSI), a momentum oscillator indicator. Bullish divergence, which suggests price will begin to increase, occurs when the price of an asset makes lower lows while indicators are seeing higher lows.

“BTC: the bullish divergence is playing out. And Bitcoin is now challenging the downtrend for a chance at further breaking out.”

On the weekly chart, the analyst is watching to see if Bitcoin can reclaim the range low to signal an uptrend.

“Bitcoin only needs to rally an extra +3.5% to the upside to position itself for a weekly candle close above $60,600 to reclaim the range low. Bitcoin needs to reclaim this re-accumulation range.”

Bitcoin is trading at $57,397 at the time of writing, down marginally over the past 24 hours.