Bitcoin Price Confirms Double Top, How Low Can BTC Drop?

by ChainChirp
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Yesterday’s weekly shut of the Bitcoin worth under the $26,000 mark has raised issues amongst analysts and merchants. This transfer might doubtlessly sign an additional decline for the main cryptocurrency, because it seems to be step one to confirming a double prime formation on the weekly chart.

Rekt Capital, a distinguished determine within the crypto evaluation sphere, took to Twitter to share his insights, stating, “BTC has formally Weekly Closed under the ~$26,000 help. Technically, BTC has begun step one within the strategy of validating this Double High formation. Flip $26,000 into new resistance and the breakdown will seemingly be confirmed.”

Bitcoin price
Bitcoin Double High | Supply: X @rektcapital

How Low Can The Bitcoin Worth Drop?

Remarkably, this isn’t the primary time Rekt Capital has voiced issues about this worth degree. Already on August 7, the analyst warned, “If BTC drops to $26,000 by mid-September then a Double High could also be forming. A breakdown from $26,000 would validate the Double High.”

Diving deeper into potential worth actions, Rekt Capital has speculated {that a} breach of the $26,000 base might see Bitcoin tumble in the direction of the $22,000 area. The analyst emphasised the significance of observing the value motion this week, noting, “if we see a weekly shut under $26,000, adopted by a rejection from $26,000, then we most likely see a confirmed breakdown from this double prime.”

Nevertheless, it’s not all gloom and doom. Rekt Capital additionally highlighted the hazards of getting overly bearish, advising merchants, “So it’s actually vital to not get caught in these draw back wicks (under $26,000).” On a brighter notice, the analyst pointed to the inverse head and shoulders sample on Bitcoin’s weekly chart which performed out in mid-March this yr, suggesting {that a} retest of its neckline, round $24,000, would possibly point out the underside of Bitcoin’s upcoming transfer.

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Decentrader, a crypto intelligence platform, weighed in on the present market situations, tweeting, “The market is at the moment experiencing essentially the most sustained interval of #bitcoin on-chain losses because the bear market lows. Is that this a purchase the dip alternative or the beginning of a deeper pullback?”

They additional highlighted potential worth actions, stating, “Bitcoin Liquidity Map: There’s a vital quantity of 3x, 5x, 10x liquidity from $23,500 right down to $21,600. IF worth did get right down to $23,500 we might see a reasonably swift liquidity escalation occasion that might transfer worth down quick.”

Bitcoin liquidity map
Bitcoin Liquidity Map | Supply: DecenTrader

Remaining Correction?

Michaël van de Poppe, one other esteemed analyst, supplied a complete historic perspective. He emphasised the importance of September as a traditionally difficult month for Bitcoin, stating, “There’s a degree which #Bitcoin should maintain with a view to keep away from a major crash. Bitcoin is at the moment holding onto a major degree of help. It’s across the $25,500 barrier.”

Van de Poppe delved into the historic and cyclical features of Bitcoin’s worth actions. He highlights that the months of August and September, particularly in a pre-halving yr, have historically been robust for Bitcoin. In August 2015, Bitcoin skilled a considerable correction in the direction of the 200-EMA however managed to remain above it. The same sample was noticed in August 2019, with a major correction adopted by a smaller one in November 2019.

Drawing parallels between the present market cycle and that of 2015, van de Poppe steered that given the inflow of recent institutional members, the present market might be mirroring the 2015 cycle. If this correlation holds, the present downturn might be the ultimate correction earlier than a possible rebound.

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At press time, BTC traded at $25,692.

Bitcoin price
BTC double prime about to get confirmed, 1-week chart | Supply: BTCUSD on

Featured picture from iStock, chart from

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