Crypto Strategist Predicts Bitcoin Correction May End Abruptly

A well-known crypto strategist, who accurately predicted Bitcoin’s pre-halving correction last year, suggests that BTC could swiftly end its current correction if a specific technical setup materializes.

Technical Analysis

The pseudonymous analyst, Rekt Capital, shared with his 542,500 followers on the social media platform X that Bitcoin’s relative strength index (RSI) indicator is showing a bullish divergence on the daily chart. A bullish divergence on the RSI often signifies a reversal signal, indicating that buying momentum is increasing despite the price of the asset trending lower or sideways.

Rekt Capital mentions that BTC is exhibiting the bullish reversal signal at a time when signs of seller exhaustion are becoming apparent. Seller volume has been decreasing in recent days, reaching a point where sellers are now generating below-average volume when attempting to control the market, paving the way for buyers to step in more actively.

Furthermore, Rekt Capital observes that Bitcoin’s resistance level around $84,000 seems to be weakening after being tested multiple times recently. The analyst suggests that once this resistance level is breached, it could potentially turn into a support level, propelling Bitcoin’s price higher.

As of the latest update, Bitcoin is currently trading at $83,150.

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