Bitcoin needs a weekly close above $60,600 to avoid further correction

Key Takeaways

• Bitcoin is nearing a 26% pullback in 46 days, its deepest retrace of the current cycle.
• A weekly close above $60,600 is crucial for Bitcoin to maintain its current accumulation range.

Bitcoin (BTC) is currently in its deepest retrace of the current cycle, nearing a 26% pullback in 46 days. According to a recent video by the trader identified as Rekt Capital, the $58,000 price area might be volatile all quarter, serving as a baseline for BTC to take off into an upward movement.

“We are still trying to hammer that base out. We are grabbing liquidity at lower prices, so we need buyers to get attracted into the market, to buy into the market, to attract that buying pressure at lower price levels to initiate a reversal back above $58,800,” the trader explained.

Bitcoin quarterly candles. Image: Rekt Capital/TradingView

Nevertheless, the weekly timeframe still holds important signs that must be observed. Rekt Capital pointed out the various accumulation ranges formed in this cycle, and all of them had their support broken for a brief moment as traders searched for liquidity. However, the weekly candle closed within the range every time.

“So it’s really important for the price, monthly or at least weekly, to close above $60,600 before the weekly candle closes. By the end of the week, we need to see Bitcoin weekly candle close above $60,600 to protect this range essentially,” he added.

Notably, if Bitcoin fails to do so, previous support will be turned into resistance. A race then starts for the next two weeks, where BTC must break the $60,600 resistance and stay above it.

Additionally, on the daily timeframe, Bitcoin is reaching lower regions below its usual clusters. Rekt Capital highlights that BTC must convincingly reclaim the $56,500 region to get further price development within the $57,000 to $65,000 price range.

Bitcoin daily chart (annotated). Image: Rekt Capital/TradingView

If Bitcoin can fit all these requisites, a new price cluster might be formed in a higher range between $65,000 and $73,000. Thus, the pattern of previous halvings of consolidation followed by a parabolic upward movement could be at play.