Bitcoin (BTC) closed the week above the $100,000 mark for the first time in history, concluding the cryptocurrency’s huge week with another milestone. However, one market watcher warned investors that historical patterns could soon lead the flagship cryptocurrency into a major correction.
Bitcoin’s first weekly close above $100,000
Bitcoin reached the $100,000 milestone almost a week ago, breaking the psychological barrier for the first time. After its enormous feat, the largest cryptocurrency by market capitalization faced its biggest setback since Trump’s victory in the US presidential election.
BTC briefly fell around 13% to the $90,000 mark in a candle that resembled its performance when it first hit the $10,000 barrier. Since then, the cryptocurrency has oscillated between $97,000 and $101,000, facing some resistance to break above the upper zone of the range.
As reported According to NewsBTC, crypto analyst Jelle noted that BTC could follow the same path as its post-$10,000 trajectory, turning the newly crossed level into support after three days, as it did in November 2017.
After oscillating between its new range for four days, Bitcoin recorded its first daily close above $100,000 on Sunday. This performance also marked its first weekly close above this barrier, showing a similar weekly performance to the $10,000 candle.
Crypto Analyst Rekt Capital highlighted that BTC’s daily close above this mark and Monday’s 2.5% retracement are “technically a retest” of this level. However, the ongoing retest is very volatile and has simultaneously been attempting to convert the “final major daily resistance”, around the $98,000 zone, into support for the past two days.
The analyst added that “a volatile retest like this makes sense, especially on a weekly basis.” He explained that the $98,000 level was broken as resistance on the weekly chart after yesterday’s close, meaning “this week is about trying to recapture this level as new support.”
Will the next few weeks be “problematic” for BTC?
Despite clearing the crucial barrier, Rekt Capital warned investors about BTC’s upcoming “Parabolic Rally Phase” post-halving. The analyst previously explained that Bitcoin enters a parabolic period lasting around 300 days each cycle after each Halving event.
Historically, BTC price records the first major pullback a month after entering price discovery mode. According to the analyst, the first “price discovery correction” historically begins between weeks 6 and 8 of each parabolic phase, with at least 25% retracements.
Rekt Capital noted that today begins the sixth week of this post-halving bullish phase, emphasizing that BTC is the period in which its price has retraced significantly. Based on this, the price of Bitcoin could vertical chopping between 25% and 40% in the coming weeks, as in 2017.
The analyst warned investors that the current retest of the $98,000 level is key, as failure to hold could initiate the first major correction:
As a result, over the next 3 weeks or so, I will be increasingly cautious with retest attempts and given BTC’s history at this point in the cycle, I wouldn’t be surprised to see key levels invalidated.
However, he stated that “the second price discovery uptrend will take place after the price discovery correction,” which could push BTC to a new ATH.
At the time of writing, Bitcoin is trading at $98,073, down 2% in the last 24 hours.
Fountain: NewsBTC.com
