A popular crypto analyst thinks that Bitcoin (BTC) could be mirroring its August 2022 price action when the king crypto lost nearly 20% of its value in weeks.
Pseudonymous analyst Rekt tells his 45,500 YouTube subscribers that Bitcoin could be setting itself up for bearish price action in the coming weeks after failing to take out resistance at $24,000.
“Bitcoin is setting itself up for potential downside continuation like we saw back in late 2022.”
The crypto strategist seems to be referring to Bitcoin’s correction in August 2022, when BTC plunged from a high of $25,200 to about $19,500 in a couple of weeks.
According to Rekt, his bearish thesis stems from Bitcoin’s reaction around $23,000, with BTC successfully retesting the key level as resistance over the past few weeks.
“What we’re seeing from Bitcoin at the moment is we’re seeing descending level by level in confirmed two-step manner: [$23,000] breakdown, weekly candles below the key level, upside wick turned into resistance [before another] breakdown.”
Rekt also says that bears would likely gather more momentum if Bitcoin closes this week below $21,800.
“Failure to reclaim this level [$21,800] as a support is going to probably see downside continuation.”
At time of writing, Bitcoin is worth $22,239, up over 2% on the day and well above Rekt’s key level for bearish continuation.
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