A closely followed crypto strategist is issuing a warning to Bitcoin holders, saying that BTC may be in the process of creating a bearish reversal pattern.
Pseudonymous analyst Rekt tells his 45,500 YouTube subscribers that over the past two weeks, Bitcoin has confirmed downside continuation after it failed to take out resistance at around $24,000.
“Now that we’ve seen this confirmed rejection and a confirmation in downside continuation… it’s very difficult to now think that [the correction] is going to be over because we’ve only just confirmed this breakdown, so saying that the dip is over right now would be a little bit premature.”
According to the crypto analyst, Bitcoin may bounce at around $21,000 only to print a lower high structure. Should BTC follow the script, Rekt says that Bitcoin could form a head and shoulders pattern, a technical formation that suggests a trend reversal may be underway as bulls struggle to drive prices higher.
“This is a scenario that I’m going to be watching for should we indeed expect further downside from here. So a little bit more downside into the lower $21,000 region… If that indeed occurs, than that’s going to be growing suspicion.”
Rekt says that a breakdown from the head and shoulders pattern could drive Bitcoin to a measured move down to the $18,000 region, where BTC’s diagonal uptrend line could offer some support.
At time of writing, Bitcoin is trading at $21,817, a fractional increase on the day.
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