A closely followed crypto analyst is warning traders that Bitcoin (BTC) is close to witnessing a severe sell-off event.
Pseudonymous analyst Rekt Capital tells his 349,900 followers on the social media platform X that Bitcoin is one support level away from triggering a breakdown from a bearish reversal pattern.
“The double top has [been] completed. Downside wicking below ~$26,000 like in mid-June will occur. But a weekly close below ~$26,000 is what would validate the double top and start breakdown continuation.”Â
According to the crypto strategist, he’s keeping a close watch on Bitcoin’s trading volume on the weekly chart. Rekt Capital notes that while Bitcoin is trading dangerously close to $26,000, a breakdown may not come to pass unless volume starts to pick up.
“BTC has completed the double top but still no breakdown confirmation as BTC holds ~$26,000 support
Interestingly, seller volume has increased in recent days
That said, BTC seller volume is still not close to sell-side volume at previous price reversals.”Â
The crypto strategist says that he’s looking at $22,000 as a downside target should BTC close the week below $26,000.
“Now that BTC has completed its double top…
It needs to have a weekly close below ~$26,000 and turn it into new resistance to confirm the breakdown
A measured move for this double top breakdown would see Bitcoin drop to ~$22,000.”
At time of writing, Bitcoin is worth $26,089.
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