In the wake of the recent crash in Bitcoin\u2019s price, analysts have been rife with speculation about the market\u2019s next steps. The BTC price briefly dipped to a low of $24,800 last week, and with the Bitcoin fear and greed index plunging from neutral to 38 (indicating fear), market sentiment is palpable. Renowned analyst Rekt Capital weighed in on the situation, offering a thorough technical breakdown.<\/p>\n
\u201cBTC is officially at the base of the double top. The double top has completed,\u201d states Rekt Capital. Highlighting the market\u2019s current vulnerability, the analyst continues, \u201cDownside wicking below ~$26,000 like in mid-June will occur. But a Weekly Close below ~$260,00 is what would validate the double top and start breakdown continuation.\u201d<\/p>\n
Though the double top\u2019s completion has ratcheted up bearish sentiment, there\u2019s no definitive breakdown yet. \u201cBTC has completed the double top but still no breakdown confirmation as BTC holds ~$26k support,\u201d Rekt Capital adds. The scenario becomes even more intriguing as \u201cseller volume has increased in recent days.\u201d The analysis reveals that the \u201cseller volume would need to increase by about +30%\u201d to match the sell-side volume Bitcoin saw during previous price reversals.<\/p>\n
Drawing attention to Bitcoin\u2019s volume dynamics, Rekt Capital elucidates, \u201cBTC formed its higher high at ~$31,000 on inclining volume. But price formed the second half of its double top on declining volume.\u201d Even though there was a spike in selling volume during the recent crash, it remains far from the seller exhaustion volume levels seen during previous BTC reversals. As the analyst starkly puts it, the current \u201cseller volume would need to probably double\u201d to mirror the levels that triggered price turnarounds in March and June.<\/p>\n
Remarkably, yesterday\u2019s weekly close saw Bitcoin failing to retain support above key bull market moving averages, including the 21-week EMA, 50-week EMA, and 200-week MA. \u201cAll of these bullish momentum indicators were confirmed as lost support with the weekly close yesterday,\u201d the analysis points out.<\/p>\n
In terms of future projections, Rekt Capital speculates that if the double top\u2019s base at $26,000 is lost, it could propel a move towards $22,000. The analyst elucidates that \u201cif we see a weekly close below $26,000, followed by a rejection from $26,000, then we probably see a confirmed breakdown from this double top.\u201d<\/p>\n
However, every bearish note comes with a caveat. Rekt Capital adds, \u201cIt\u2019s really easy to get caught up in bearish euphoria\u2026 So it\u2019s really important not to get caught in these downside wicks (below $26,000).\u201d And for those seeking potential bullish scenarios, the analyst has one in mind: \u201cEven if we break down from this double top\u2026 one of the main areas is this inverse head and shoulders formation that we saw play out earlier this year.\u201d A retest of this pattern\u2019s neckline, roughly around $24,000, could spell bullish prospects for the premier cryptocurrency.<\/p>\n
Historical data also lends a hand in making sense of Bitcoin\u2019s trajectory. \u201cA drawdown of 18% to $24,000 would be totally normal for an August month,\u201d the analyst shares, reminding investors that Bitcoin has often underperformed in August. Drawing parallels with 2015, Rekt Capital argues that Bitcoin also approached a halving and lost 18% in August, suggesting that history might repeat, especially with the next halving anticipated in April of the coming year.<\/p>\n
At press time, the BTC price was at $26,069.<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
In the wake of the recent crash in Bitcoin\u2019s price, analysts have been rife with speculation about the market\u2019s next steps. The BTC price briefly dipped to a low of $24,800 last week, and with the Bitcoin fear and greed index plunging from neutral to 38 (indicating fear), market sentiment is palpable. Renowned analyst Rekt Capital weighed in on the situation, offering a thorough technical breakdown.<\/p>\n
\u201cBTC is officially at the base of the double top. The double top has completed,\u201d states Rekt Capital. Highlighting the market\u2019s current vulnerability, the analyst continues, \u201cDownside wicking below ~$26,000 like in mid-June will occur. But a Weekly Close below ~$260,00 is what would validate the double top and start breakdown continuation.\u201d<\/p>\n
Though the double top\u2019s completion has ratcheted up bearish sentiment, there\u2019s no definitive breakdown yet. \u201cBTC has completed the double top but still no breakdown confirmation as BTC holds ~$26k support,\u201d Rekt Capital adds. The scenario becomes even more intriguing as \u201cseller volume has increased in recent days.\u201d The analysis reveals that the \u201cseller volume would need to increase by about +30%\u201d to match the sell-side volume Bitcoin saw during previous price reversals.<\/p>\n
Drawing attention to Bitcoin\u2019s volume dynamics, Rekt Capital elucidates, \u201cBTC formed its higher high at ~$31,000 on inclining volume. But price formed the second half of its double top on declining volume.\u201d Even though there was a spike in selling volume during the recent crash, it remains far from the seller exhaustion volume levels seen during previous BTC reversals. As the analyst starkly puts it, the current \u201cseller volume would need to probably double\u201d to mirror the levels that triggered price turnarounds in March and June.<\/p>\n
Remarkably, yesterday\u2019s weekly close saw Bitcoin failing to retain support above key bull market moving averages, including the 21-week EMA, 50-week EMA, and 200-week MA. \u201cAll of these bullish momentum indicators were confirmed as lost support with the weekly close yesterday,\u201d the analysis points out.<\/p>\n
In terms of future projections, Rekt Capital speculates that if the double top\u2019s base at $26,000 is lost, it could propel a move towards $22,000. The analyst elucidates that \u201cif we see a weekly close below $26,000, followed by a rejection from $26,000, then we probably see a confirmed breakdown from this double top.\u201d<\/p>\n
However, every bearish note comes with a caveat. Rekt Capital adds, \u201cIt\u2019s really easy to get caught up in bearish euphoria\u2026 So it\u2019s really important not to get caught in these downside wicks (below $26,000).\u201d And for those seeking potential bullish scenarios, the analyst has one in mind: \u201cEven if we break down from this double top\u2026 one of the main areas is this inverse head and shoulders formation that we saw play out earlier this year.\u201d A retest of this pattern\u2019s neckline, roughly around $24,000, could spell bullish prospects for the premier cryptocurrency.<\/p>\n
Historical data also lends a hand in making sense of Bitcoin\u2019s trajectory. \u201cA drawdown of 18% to $24,000 would be totally normal for an August month,\u201d the analyst shares, reminding investors that Bitcoin has often underperformed in August. Drawing parallels with 2015, Rekt Capital argues that Bitcoin also approached a halving and lost 18% in August, suggesting that history might repeat, especially with the next halving anticipated in April of the coming year.<\/p>\n
At press time, the BTC price was at $26,069.<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-28482","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/28482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=28482"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/28482\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=28482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=28482"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=28482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}