Crypto Analyst Warns of Bearish Pattern and Bitcoin Breakdown
An analyst known as Rekt Capital is cautioning crypto readers that Bitcoin (BTC) is forming a bearish pattern similar to the one seen before the cryptocurrency’s collapse in late 2021. The analyst explains that Bitcoin is on the verge of breaking down from a double top pattern and a sell-off event with increased volume could trigger the breakdown process. Rekt Capital notes that Bitcoin’s current price action is reminiscent of its late 2021 behavior when it ended its last bull market after breaking down from a double top pattern. Additionally, the analyst points out that key moving averages are now acting as resistance for Bitcoin, just as they did in 2021.
Key Points:
- Bitcoin is forming a bearish double top pattern.
- A sell-off event with increased volume could confirm the breakdown.
- Bitcoin’s current price action mirrors its late 2021 behavior.
- Key moving averages are acting as resistance for Bitcoin.
- The analyst expects Bitcoin to bounce before breaking down to around $20,000.
Hot Take:
Rekt Capital’s analysis suggests that Bitcoin may be heading towards a bearish breakdown. If the cryptocurrency fails to overcome the resistance posed by key moving averages and breaks down from the double top pattern, a significant corrective move towards the $20,000 price area could be in store. Crypto readers should closely monitor Bitcoin’s price movement and volume to assess whether the bearish pattern is confirmed.
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