A closely followed analyst who correctly called Bitcoin’s pullback earlier this year is unveiling his most bearish scenario for BTC.
In a video update, pseudonymous analyst Rekt Capital tells his 90,500 YouTube subscribers that he’s keeping a close eye on Bitcoin’s reaccumulation support at $60,000.
According to the analyst, a move below this level will likely trigger another capitulation event for BTC.
“But if we do fail this range low here, this range low retest, we’ll have once again a period of bargain-buying and downside deviation below this reaccumulation range low.
This is where loads of people are going to be capitulating, loads of people are going to experience maximum pessimism, extreme fear.”
But Rekt Capital highlights that the fear, uncertainty and doubt (FUD) arising from another range breakdown will likely present golden opportunities for long-term investors.
According to the analyst, Bitcoin has been forming and breaking out of reaccumulation ranges during this bull market cycle.
“But all of those emotions, all of those combustible, fervent, extreme emotions precede financial opportunity. This has been the case not just in this case, but across previous ranges in the past throughout the cycle. This cycle generally has been a cycle of reaccumulation ranges all the way to the halving and new all-time highs.
History is suggesting to us that this is going to be no different…
The main goal is for price to simply finally reclaim the range low as support to rally to $70,000 for a challenge at breaking out beyond this reaccumulation range high, ending the post-halving reaccumulation phase to finally transition into the post-halving parabolic upside phase of the cycle.”
At time of writing, Bitcoin is trading for $63,654, up 3% on the day.
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