Experienced cryptocurrency analyst Rekt Capital has warned investors to be prepared for a possible sell-off in the largest cryptocurrency, Bitcoin (BTC), due to significant selling pressure. The analyst also added that if the price manages to hold above the support level of around $26,000, he does not expect such a drop.
Rekt Capital: Bitcoin Forms a Double Top Pattern
Anonymous cryptocurrency analyst Rekt Capital stated that Bitcoin is only one support level away from triggering a potential breakout from a bearish reversal pattern, known as a double top formation. He said, “The target level of the double top formation has been reached. The drop below $26,000, similar to mid-June, has occurred. If the weekly close is below approximately $26,000, the double top will be confirmed, and a further decline can be expected from that point.”
The cryptocurrency analyst also highlighted that Bitcoin closely monitors its trading volume on the weekly timeframe. Despite being dangerously close to $26,000, if the trading volume increases, a collapse may not occur:
Bitcoin has completed the double top formation, but there are no signs of a collapse due to Bitcoin holding above the $26,000 support level. Interestingly, the selling volume has increased in recent days. However, the selling volume of BTC is still not close to the selling volume seen in previous price changes.
Potential Target for Downward Movement is $22,000 if Price Falls Below Support
Rekt Capital stated that if BTC closes the week below $26,000, he expects a downward target of $22,000. In his analysis of the drop, he said, “Now that Bitcoin has completed the double top formation, it needs to close below approximately $26,000 for confirmation of the collapse and convert this level into resistance. A measured move with a moderate decline can be expected for the double top to be broken, with the price dropping to around $22,000.”