- Bitcoin is up by $1 trillion since its bottom on November 2022
- Crypto trader says current BTC movement is similar to an ascending triangle in 2019
- Investors are advised to keep cautious in the short term as BTC may be in a bull trap as of January 2023
The cryptocurrency market has made a much-needed steady rise since November 2022. Today, Rekt Capital, a pseudonymous crypto trader who has more than 45,000 subscribers on YouTube and 333,900 followers on Twitter, said Bitcoin (BTC) might break out this year.
His analysis states, “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 to new all-time highs.”
Based on his charts, the last resistance was nearly $24,000 before FTX’s collapse caused widespread panic in the crypto market. For two months since November 2022, BTC was circling $16,000 to $17,000. Its price has increased by more than 35% and reached a market cap of more than $1 trillion.
BTC is floating near the previous resistance of $21,000 to $23,000, which may indicate a potential breakthrough to $26,000 to $30,000 (the last substantial support area in 2021) or another drawback to $16,000 or lower.
He also stated that investors should be aware of the short-term candles as BTC will not just budge through all the most vital resistance lines of last year.
After all, the current economy fears a recession, and stock and crypto markets have no strong white swans to reverse the bear market anytime soon. Yet, more retailers and bulk buyers are cashing in on crypto, looking at the current fears as an opportunity to buy.
Bull Run or Bull Trap
The famous trader added that the chart is “worth noting that a fakeout scenario here could occur for BTC as the 200-week MA is hovering just above $23,400.”
In June 2022, The 200-week moving average (MA) was the previous indicator that many analysts believed was an excellent signal for a bounce-back. Unfortunately, while the community thought BTC was recovering for five months, the FTX fallout happened, pulling back the price to the $16,000 support line.
Rekt Capital is just one of many traders on social media who has made multiple good calls, especially his predictions of BTC’s FOMO to $69,000 in 2021 and the crash in 2022. For his loyal followers, he may be right again. That would also mean that analysts in mainstream media – most of them saying that BTC will go less than $10,000 – did nothing but cause FUD so the more prominent buyers can bank in on better price cuts.
Either way, savvy investors advise that those considering buying crypto this year should do extensive research and plan an investment strategy, not just make impulsive decisions solely based on a trader’s predictions on social media.
