Bitcoin’s Double Top Formation Rings Alarms for Analyst

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• Renowned crypto analyst Rekt Capital warns that Bitcoin (BTC) is nearing a bearish double-top pattern, a formation that preceded its 2021 market collapse.
• The strategist suggests that BTC could witness a deep corrective move towards the $20,000 mark after validating its bearish pattern.

The Ghost of Bitcoin’s Past Haunts Again

As the Bitcoin (BTC) market wrestles with volatility, a high-profile analyst known as Rekt Capital rings cautionary bells. With an audience of 350,800 on social media platform X, the pseudonymous strategist issues a sobering alert: Bitcoin is on the verge of validating a bearish double-top pattern, reminiscent of the formation that led to its late 2021 price collapse.

Unpacking the Bearish Double-Top Pattern

In technical analysis, a “double-top” is a reversal pattern typically signifying that an asset is encountering resistance at a certain price point. It’s characterized by the asset hitting a high, retreating, and then returning to that high before declining again. This pattern is generally followed by a sharp downturn, and in Bitcoin‘s case, Rekt Capital identifies the crucial “loss of ~$26,000,” as the level that, once turned into new resistance, would confirm this bearish pattern.

Connecting past and present, Rekt Capital further elaborates that Bitcoin‘s current price behavior mirrors its late 2021 trajectory.

“In 2021, BTC formed two clear tops akin to a double top before forming the third top at a lower high. Right now, it looks like BTC has once again formed two clear tops, akin to a double top, with a potential third top forming at a lower high,”

he states.

However, the similarities are not limited to mere price action. Rekt Capital highlights that the asset is also experiencing resistance at key moving averages, specifically the 21-week exponential moving average (EMA) and the 50-week EMA, located around ~$27,000-$28,000. In simpler terms, these moving averages act as indicators of the asset’s momentum and are presently signaling roadblocks ahead for Bitcoin, as they did in 2021.

The prognostications turn grimmer as the analyst anticipates a corrective plunge towards the $20,000 realm. According to the patterns outlined by the 2021 Bitcoin fractal, the asset could form its third top at a lower high before losing the pivotal $26,000 support. After this event, the fractal foresees Bitcoin experiencing a temporary bounce, only to turn that $26,000 into a new resistance level before succumbing to further downward pressure.

As of this writing, Bitcoin is trading at $25,850, perilously close to the levels that Rekt Capital identifies as critical for its future trajectory.