Top Crypto Analyst Warns Markets Due to Minor Pullback, Dives Deeper into Bitcoin and Ethereum
A widely followed analyst says the crypto market is set to see a minor pullback after a rally last week.
Pseudonymous crypto strategist Rekt Capital tells his 324,200 Twitter followers that Bitcoin (BTC), Ethereum (ETH) and other altcoins are likely to lose some of their gains as they try to break the resistance levels.
“After a strong week last week, the crypto market appears to be in a slight decline. BTC, ETH and many Altcoins appear to be positioned for healthy declines, which could act as key tests of former resistance to new supports.”
In his newsletter, Rekt says that Bitcoin will likely have some trouble breaking the $21,894 level, which currently sits right on the 200-week moving average, a level often considered by traders as a crucial line of support or resistance.
“A decline here could take place, at least towards the blue box region. Because the blue box represents a sideways area from which the price has broken out. If BTC were to fall now, it would be retesting the top of that area as new support. Successful retest there and BTC would rally again towards the 200-week MA.”
Looking at Ethereum, Rekt says that if ETH can close the month of July above the $1,400 level, the leading smart contract platform could turn this area into support and climb higher. Conversely, a close below that and Ethereum could bounce back to the $1,000 range.
“If ETH is able to monthly close above orange, there will be a chance to turn this area into support…
If ETH Monthly closes below the lower orange box, we could see a scenario where ETH actually rejects from the orange box and falls back to the black level back from earlier this month.
At the time of writing, ETH is changing hands for $1,418.
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