Bitcoin and an AI Altcoin at Crucial Pivot Points, Says Crypto Trader Here’s His Outlook

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A widely followed crypto analyst updates his outlook on Bitcoin (BTC) and artificial intelligence (AI) altcoin Fetch.ai (FET).

Pseudonymous crypto trader Rekt Capital tells his 332,200 Twitter followers that Bitcoin is set to confirm a bull market after its rally this week.

However, they warn that it could take a few months to break the main bear market trend lines and do not rule out lower prices by then.

BTC is trying to break above the multi-month downtrend line on the weekly timeframe. The weekly close above the trendline likely confirms the breakout. But the most important trendline to break to confirm a new bull market is the macro downtrend on the monthly time frame.

BTC is in a transition phase. It is on the border of the end of the bear market and the new beginning of the bull market. This phase could take a few months and further lows cannot yet be fully ruled out. But it’s great to see that there is finally light at the end of the tunnel.

Source: Rekt Capital/Twitter Source: Rekt Capital/Twitter

The trader also looks at Bitcoin’s Relative Strength Index (RSI), a measure of asset momentum, as an indicator that the King of Crypto is signaling an uptrend. The analyst says that the RSI needs to climb into the previous lower RSI bear market range to confirm the uptrend.

“Monthly BTC RSI also breaks out of its downtrend channel. To confirm the uptrend, BTC RSI needs to reclaim the former bear market lower zone (green) as support in the meantime, until it is picked up, it could technically act as a resistor.

Source: Rekt Capital/Twitter

Rekt Capital also indicates that another market indicator to watch is whether Bitcoin can break through the $20,000 psychological price level, which has served as support for much of the past year. They say that $20,000 could serve as resistance during the current rally. At the time of writing, Bitcoin is changing hands at $19,287.

BTC is slowly but surely approaching the psychological level of $20,000 $20,000 served as multi-month support for much of 2022 and may soon act as resistance. Macro-wise, BTC sits in the monthly range of $13,900-$19,500 (blue-blue).

Source: Rekt Capital/Twitter

Focusing on Fetch.ai, the crypto trader says the decentralized machine learning system blockchain project is well positioned to confirm a higher support level at $0.262 after rising alongside the broader market rally of crypto.

“The FET follows the green path and finally reaches the blue resistor. Now I’m just waiting for confirmation if the FET can turn the blue level into support or if the price needs a healthy dip into the red next.

Source: Rekt Capital/Twitter

At the time of writing, Fetch.ai is valued at $0.245.

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