Bitcoin (BTC) May Have Formed a Market Bottom and Is Now Looking Bullish

A closely followed crypto analyst says Bitcoin (BTC) may have formed a market bottom and is now looking bullish.

Crypto trader Rekt Capital says Bitcoin is looking bullish after forming a pattern of higher lows on the daily chart.

In a new analysis, Rekt Capital points out that Bitcoin's latest correction hit a low of $70,700 on Monday before buyers stepped in. The analyst says the low is above the high of $70,000 that Bitcoin hit during last week's correction.

"Looks like the higher low is in. And it seems Bitcoin performed another downside deviation in order to form a higher low relative to last week's low of ~$78,600—without having to refill that lower partially filled CME Gap, as well."

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The analyst adds that Bitcoin's latest correction is not unusual when compared to price action in the current bull market cycle as well as previous bull market cycles.

"Back in mid-December 2024, Bitcoin needed a -25% pullback to reach the top of the CME Gap between $78,000 and $80,700. In other words, it needed to drop a similar amount to the retraces we saw occur around the post-halving period of -25% to -30%.

This retrace isn't just ordinary by standards of previous cycles where -30% retraces were the norm, it is ordinary by standards of this current cycle as well."

According to Rekt Capital, the key level for Bitcoin to break on the weekly chart reignite bullish momentum is $93,500.

"The narrative that Bitcoin is in a bear market already is also keeping traders out of the market. But those who aren't participating aren't going to be able to participate in the bull market later on.

And worries about a premature BTC bear market will stiffle your participation in a bull market. As in "bear markets aren't realized quickly, they gradually over time with lower lows and lower highs."

At the time of writing, Bitcoin is trading at $89,906.