Top crypto analyst warns markets of a small pullback and dives deeper into Bitcoin and Ethereum
A popular analyst says the crypto market will see a slight pullback after rallying over the past week.
Pseudonymous crypto strategist Rekt Capital tells his 324,200 Twitter followers that Bitcoin (Bitcoin), ether (ETH) and other altcoins are likely to lose some of their gains as they try to break through resistance levels.
“After a strong week last week, the crypto market looks set for a small pullback. BTC, ETH and many altcoins appear to be positioned for healthy dips that could act as key retests of previous resistance into new support.”
In his newsletter, Rekt says that Bitcoin will likely have some trouble breaking the $21,894 level, which is currently right on the 200-week moving average, a level that traders often see as a crucial support or resistance line .
“Here, at least in the direction of the blue-framed region, a refusal could occur. Because the blue box represents a sideways range from which the course has broken out. If BTC declined now, it would retest the top of this range as new support. Successful retest there and BTC would recover towards the 200-week MA.”
Source: Rekt Capital
Looking to Ethereum, Rekt says that if ETH can close the month of July above $1,400, the leading smart contract platform could turn that range into support and move higher. Conversely, a close below could see Ethereum revisit the $1,000 area.
“If ETH is able to close the month close via orange there is a chance to turn this area into support…
If ETH Monthly closes below the bottom orange box, then we may see a scenario where ETH actually rejects the orange box and reverts back to the black price, which rallied from earlier this month.”
Source: Rekt Capital
At the time of writing, ETH is changing hands for $1,418.
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