Popular Crypto Strategist Issues Bitcoin Alert, Says BTC Forms Bearish Reversal Structure
A closely watched analyst is warning Bitcoin (BTC) investors that the royal crypt could be days away from a sell-off event.
Pseudonymous analyst Rekt tells his 342,300 Twitter followers that Bitcoin is still respecting its diagonal resistance and could witness bearish price action in the near term.
According to Rekt, the inability of Bitcoin bulls to push BTC higher could be a sign that the king crypt is setting up for a significant retracement.
“BTC continues to struggle with the higher high resistance (black).
BTC will continue to be non-trending as it consolidates between the higher high resistance and the green support at $27,000
Fall in green may happen soon.
Lose it -> deeper tracking confirmed.”
Rekt also warns that Bitcoin is starting to form a bearish reversal structure on the daily chart. According to the analyst’s chart, a support break around $27,000 could confirm the reversal pattern.
“BTC double tops tend to be symmetrical patterns.
The first part of the pattern formed within 10 days.
Currently, the second part of the pattern has formed over the course of seven days.
[The] the next handful of days will be crucial in determining whether a double top fully forms.”
The crypto strategist also presents the possibility that BTC may mirror the market structure of 2015 when it witnessed a deep correction after retesting bear market resistance to support.
Should Bitcoin repeat history, the analyst says the pullback could be the start of a strong uptrend.
“Historically, when BTC has broken a macro downtrend, a macro uptrend followed.
However, in 2015, there was only a BTC retest of the downtrend before the upside.
If a drop occurs in April or May, it could be one of the last visits below ~$25,000 for months.”
At the time of writing, Bitcoin is trading at $27,846.
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