Bitcoin breakout imminent? Analyst says key price point will be crucial, tracks path for Litecoin and three Ethereum-based altcoins
A popular crypto analyst says Bitcoin (BTC) could continue its uptrend as he keeps a close eye on Litecoin (LTC) and three Ethereum-based (ETH) altcoins.
Pseudonymous trader Rekt Capital tells his 334,000 Twitter followers that he expects BTC to keep climbing as long as its level of dominance successfully retests a key level.
“A monthly close in BTC dominance above the high resistance area could prime BTCDOM for a retest. Successful retest there and BTC Dominance would revisit the top of the black wedge to make a decision on the macro trend.”
Source: Rekt Capital/Twitter
However, the trader notes that if it fails to close above its current resistance level, it is possible for the king crypto to go the other way.
“To ensure a higher chance of a breakout, BTC should ideally close above the ~$23400 blue resistance on a monthly basis. Otherwise, BTC could be set for a drop within this ~20,000 – $23,400 range to consolidate here for a couple of weeks.”
Bitcoin is trading at $23,123 at the time of writing.
Moving on to altcoins, Rekt Capital first brings up the peer-to-peer decentralized network Litecoin, saying that the BTC alternative is currently poised to stage a rally to the upside.
“LTC has broken out of its monthly flag. And with the monthly close right around the corner, it is well positioned to confirm this breakout.”
The analyst also notes the varied reactions of traders to Litecoin’s current prices.
“It is clear that at these prices there is a very different reaction to LTC
Historically, LTC has failed either a post-breakout retest from the green (prior to 2018) or a fake breakout (2020).
But this time LTC has broken out of a bull flag continuation pattern.”
Litecoin is valued at $88.03 at the time of writing.
The strategist then brings up oracle provider network Chainlink (LINK) and says he expects it to rally back to the $20 mark over time.
“LINK follows the blue path well. LINK is up +13% so far from the black $6.27. Might revisit the black areas high up over time.”
Chainlink is changing hands for $7.27 at the time of writing.
Next is the data token marketplace Ocean Protocol (OCEAN). The analyst says OCEAN could end the rally it started in mid-2022 if it fails to breach a key resistance zone.
“OCEAN/BTC continues its rally and is approaching the confluent resistance, which is the one-year high of the black diagonal and blue range. It is possible [its] The price could drop from there, especially if upside wicks form beyond this area.”
OCEAN moves for $0.394.
Last is Coti Network (COTI), the decentralized payments platform behind Cardano’s (ADA) new stablecoin Djed.
According to Rekt Capital, the network has just retested a crucial area and is in the process of seeing if it can outperform the next.
“COTI is breaking the red diagonal resistance and successfully retesting it as support on the 1HR. COTI has since recovered into the high resistance area (orange). A weekly close beyond the red diagonal could set COTI up for a retest as support going forward.”
COTI is trading at $0.116 at the time of writing.
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