Bitcoin Is Now at Risk of Reversing 2023 Uptrend

A well-known cryptocurrency analyst is cautioning traders about a potential significant drop in Bitcoin’s value. Rekt Capital, who goes by a pseudonym, has shared with his 349,900 followers on the social media site X that Bitcoin is on the verge of breaking support level, which could trigger a bearish reversal pattern.

The analyst has stated that the double-top formation has already taken place. He also predicts that Bitcoin’s value could fall below $26,000, similar to what happened in mid-June.

According to the analyst, if Bitcoin closes below $26,000 for an entire week, it will validate the double top formation and lead to a continuation of the breakdown.

He is monitoring Bitcoin’s trading volume on the weekly chart. Despite Bitcoin’s current trading close to the $26,000 mark, Rekt Capital suggests that a breakdown is unlikely unless there is a significant increase in trading volume.

Although BTC has completed a double top, it has not yet confirmed a breakdown and is still holding steady at support levels around $26,000.

The strategist has observed an increase in seller volume in recent days, but it is still not significant enough to cause a price reversal.

If BTC closes the week below $26,000, the strategist is targeting $22,000 as a potential downside target.

To confirm a breakdown, BTC needs to close below $26,000 and turn it into new resistance. If this does happen, Bitcoin’s price could drop to approximately $22,000. As of writing this, Bitcoin is currently valued at $26,089.

An analyst, known as TechDev, has suggested that the recent correction in Bitcoin’s (BTC) value could be a fakeout before the cryptocurrency experiences a new bull run.

TechDev, who has 417,000 followers, believes that if past cycles are any indication, Bitcoin’s drop to $25,000 may act as a springboard for a new expansion up.

The analyst regularly monitors global liquidity cycles and uses the Chinese 10-year bonds (CN10Y) against the US dollar index (DXY) to gauge market trends.