In the markets, there are many experts who have been making a name for themselves and accurately predicting significant turning points. Two of them have gained significant popularity in the last 2-3 years. The market analysis of those who have accurately predicted major movements in the past is attracting much more attention. This is due to the probability of correctly predicting the direction of the price in the future. Or we can say that investors see such potential for accurate predictions.
World-famous Analyst’s Bitcoin Comment
Renowned crypto analyst, known as Rekt Capital, warns that Bitcoin formed a bearish reversal pattern just before the crypto king crashed in late 2021. According to the crypto strategist, a high-volume selling event will trigger the crash. It may sound terrifying, but considering the performance charts before the halving, this view may not be so absurd.
“BTC is confirming the double top formation. After a break in seller volume and a reversal from the resistance at $26,000, the confirmation will take place. In 2021, BTC formed two distinct tops that resemble a double top before forming the third top at a lower peak. Currently, BTC appears to have formed two clear tops similar to a double top, and a potential third top is forming at a lower peak.”
Rekt Capital says that the similarities go beyond the price action of BTC. The crypto strategist emphasizes that key moving averages no longer serve as support for BTC, just like in 2021.
“Because BTC is encountering resistance at the bull market moving averages, which are around $27,000-$28,000. These BTC moving averages are the green 21-week EMA (exponential moving average) and the blue 50-week EMA. Just like in 2021, they are acting as resistance.”
The analyst highlights that Bitcoin could bounce again before falling and reaching $20,000.
“The 2021 fractal of BTC indicates that BTC may form its third peak at a lower peak soon and eventually lose support at $26,000. Then, the region will turn into resistance, and a bottom will be reached.”
Capo’s Latest Crypto Market Comment
If Rekt Capital proves to be right, a drop to $20,000 will cause massive losses for altcoins. Many altcoins are trading near their historical lows. Some have even tested the all-time low (ATL) levels on the Binance exchange. Worse still, some are starting to form new bottoms below these ATL regions. As the price breaks above the 600-800-day trend lines, raising hopes for an upward trend, these trend lines are now turning into resistance.
Capo commented on the recent drop as follows:
“The fake rally is over, and the possibility of short-term recovery has been invalidated. I expect a major selling wave.”
Capo is more ruthless about the dip and expects a drop to $12,000. He has been expressing this target since November, but the rally at the beginning of 2023 made his target a subject of ridicule. Time will show who is right.
