A carefully adopted analyst is warning that Bitcoin (BTC) is forming a bearish sample final seen simply earlier than the crypto king collapsed in late 2021.
Pseudonymous analyst Rekt Capital tells his 350,800 followers on the social media platform X that Bitcoin could be very near breaking down from a bearish double high sample.
Based on the crypto strategist, a sell-off occasion with elevated quantity would ignite the breakdown course of.
“BTC is on the cusp of validating its double high formation.
A breakout on vendor quantity and a convincing lack of ~$26,000 adopted by turning it into new resistance would verify the breakdown.”
Zooming out, Rekt Capital says that Bitcoin seems to be mirroring its late 2021 worth motion when BTC ended its final bull market after breaking down from a double high sample.
“In 2021, BTC shaped two clear tops akin to a double high earlier than forming the third high at a decrease excessive.
Proper now, it seems to be like BTC has as soon as once more shaped two clear tops, akin to a double high, with a possible third high forming at a decrease excessive.”
Rekt Capital says that the similarities prolong past BTC’s worth motion. The crypto strategist highlights that key transferring averages at the moment are appearing as resistance for BTC similar to in 2021.
“As a result of BTC is experiencing resistance on the bull market transferring averages that are situated round ~$27,000-$28,000.
These BTC transferring averages are the inexperienced 21-week EMA (exponential transferring common) and the blue 50-week EMA.
They’re appearing as resistance, very like they did in 2021.”
The analyst goes on to say that he expects Bitcoin to bounce yet another time earlier than breaking down and witnessing a deep corrective transfer near the $20,000 worth space.
“The BTC 2021 fractal suggests BTC may quickly type its third high at a decrease excessive earlier than rejecting there and at last dropping ~$26,000 help.
After that, the fractal means that BTC would bounce however solely to show ~$26,000 into new resistance earlier than rejecting decrease.”
At time of writing, Bitcoin is value $25,850.
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