In the wake of the recent crash in Bitcoin’s price, analysts have been rife with speculation about the market’s 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.
“BTC is officially at the base of the double top. The double top has completed,” states Rekt Capital. Highlighting the market’s current vulnerability, the analyst continues, “Downside 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.”
Though the double top’s completion has ratcheted up bearish sentiment, there’s no definitive breakdown yet. “BTC has completed the double top but still no breakdown confirmation as BTC holds ~$26k support,” Rekt Capital adds. The scenario becomes even more intriguing as “seller volume has increased in recent days.” The analysis reveals that the “seller volume would need to increase by about +30%” to match the sell-side volume Bitcoin saw during previous price reversals.
Drawing attention to Bitcoin’s volume dynamics, Rekt Capital elucidates, “BTC formed its higher high at ~$31,000 on inclining volume. But price formed the second half of its double top on declining volume.” 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 “seller volume would need to probably double” to mirror the levels that triggered price turnarounds in March and June.
Remarkably, yesterday’s 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. “All of these bullish momentum indicators were confirmed as lost support with the weekly close yesterday,” the analysis points out.
How Low Will Bitcoin Price Drop?
In terms of future projections, Rekt Capital speculates that if the double top’s base at $26,000 is lost, it could propel a move towards $22,000. The analyst elucidates that “if we see a weekly close below $26,000, followed by a rejection from $26,000, then we probably see…
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