A widely followed analyst says that the crypto market is set to see a minor pullback following a rally last week.
The pseudonymous crypto strategist Rekt Capital tells his 324,200 Twitter followers that Bitcoin (BTC), Ethereum (ETH) and other altcoins will likely shed some of their gains as they attempt to break resistance levels.
“After a strong week last week, the Crypto market looks set for a minor pullback. BTC, ETH and many Altcoins appear to be positioned for healthy dips which could figure as key retests of previous resistances into new supports.”
In his newsletter, Rekt says that Bitcoin will likely have some trouble cracking the $21,894 level, which currently sits right at the 200-week moving average, a level often thought of by traders as a crucial line of support or resistance.
“A rejection here could take place, at least towards the blue boxed region. Because the blue box represents a sideways range which price has broken out from. If BTC were to dip now, it would be to retest the top of that range 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, then the leading smart contract platform could flip that range into support and climb higher. Conversely, a close below it and Ethereum could make its way back down to the $1,000 area.
“If ETH is able to Monthly Close above orange, then there will be a chance for turning this area into support…
If ETH Monthly Closes below the lower orange box, then we may see a scenario where ETH actually rejects from the orange box and falls back to the black level price rebounded from earlier this month.”
At time of writing, ETH is changing hands for $1,418.