Bitcoin price shows “first signs of stability” after last week’s crash, says trader

Bitcoin’s (BTC) daily chart structure is showing its first signs of stability after the crash seen last week, according to the trader who identifies himself as Rekt Capital. In an X post, he highlighted that BTC is getting closer to its previous “June downtrend” line, and this resistance will be challenged if a bullish divergence scenario plays out.

#BTC

Bitcoin is showcasing some initial signs of stability after the crash

And in doing so, it is creeping closer to the Downtrend (light blue)

This Downtrend will be challenged if the Bullish Divergence plays out$BTC #Crypto #Bitcoin https://t.co/2TrYTkvb4H pic.twitter.com/vv98DSufPQ

— Rekt Capital (@rektcapital) July 9, 2024

This comes after the trader explained that Bitcoin failed to make a daily close above the $58,350 price level on the daily chart on July 7th, turning this into a point of price rejection. Despite this crash, BTC managed to keep the $56,750 level as support.

Notably, looking at the weekly chart, Rekt Capital doubled down on the importance of a closure above $60,600, so Bitcoin can regain upside momentum. “On this recent rally, BTC has a chance to reclaim $60600 as support to confirm last week’s extensive downside as a fake breakdown. Crucial days ahead,” the trader stated.

Moreover, looking at a larger timeframe, Rekt Capital pointed out the importance of a quarterly closure above the $58,790 price zone. “We’ll see upside & downside beyond & below this level over the coming months. Most important thing will be how BTC Quarterly Closes relative to this level,” he added.

A fellow trader who identifies himself as Altcoin Sherpa also went to X to say that Bitcoin’s daily chart looks “not great.” He shared with his followers today that lower highs and a lower low were formed recently.

Simply put, the 1 day market structure on $BTC is not great. Probable lower highs and now a lower low just came; I’d want to see price strongly get above 64k before I call this ‘ok’.

More just wait and see before calling this a reversal pic.twitter.com/8CDYaTDLkc

— Altcoin Sherpa (@AltcoinSherpa) July 9, 2024

“I’d want to see price strongly get above 64k before I call this ‘ok’. More just wait and see before calling this a reversal,” Altcoin Sherpa added.

Therefore, despite showing signs of stability, it is still not clear if Bitcoin will be able to hold its current price levels over the next few days.