Cryptocurrency analyst Rekt Capital, known for accurately predicting the pre-halving Bitcoin correction earlier this year, is now setting his sights on altcoins as Bitcoin takes center stage. In a recent tweet to his over 500,000 followers on X, Rekt Capital suggests that a bullish Ethereum (ETH) could pave the way for a resurgence in the altcoin market.
According to the analyst, a breakout in Ethereum could trigger the next wave of rallies for altcoins. He notes that Ethereum is on the verge of a high timeframe breakout, with the digital asset currently testing the $3,700 resistance level. A weekly close above this level could signal the end of the 2024 ETH downtrend and kickstart a new bullish phase for the cryptocurrency.
Ethereum has already closed the latest weekly candle above $3,700 and is currently trading at $3,731. Rekt Capital previously stated that a move above $3,100 for Ethereum would lead to capital rotation from Bitcoin to ETH, with further capital flow expected to move from ETH to mid-cap and lower-cap coins.
Turning his attention to Bitcoin, Rekt Capital believes that the flagship cryptocurrency needs to rally above its immediate resistance to fuel a move towards the six-figure level. A daily close above the bull flag resistance of around $97,450 could set the stage for Bitcoin to challenge the $100,000 mark once again. At the time of writing, Bitcoin is trading at $97,891.
Overall, Rekt Capital’s analysis suggests that a positive price action in Ethereum could catalyze a broader rally in the altcoin market, while Bitcoin’s performance will be crucial in determining the direction of the overall cryptocurrency market. Investors and traders are advised to stay tuned for further updates and price movements in the crypto space.
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