- Crypto analyst Rekt Capital warns that Bitcoin (BTC) is close to witnessing a severe sell-off event.
- Rekt Capital points out that the double top has been completed and a weekly close below ~$26,000 would validate the double top and start breakdown continuation.
- Rekt Capital indicates that $22,000 could be a downside target if Bitcoin closes the week below $26,000.
Crypto Analyst Warns of BTC Sell-Off Event
A closely followed crypto analyst has issued an alert warning traders that Bitcoin (BTC) is close to experiencing a severe sell-off event. Pseudonymous analyst Rekt Capital informs his 349,900 followers on X that one support level away from triggering a breakdown from a bearish reversal pattern exists.
Analyzing Double Top Completion
The crypto strategist is looking at Bitcoin’s trading volume on the weekly chart for signs of any potential breakdowns. Although Bitcoin is trading dangerously close to $26,000, Rekt Capital notes that unless volume starts to pick up this will not come to pass.
Downside Target if Weekly Close Below $26K
If BTC does close the week below $26,000 then according to Rekt Capital the measured move for this double top breakdown would see Bitcoin drop to ~$22,000. Currently BTC is worth around $26,089.
Watching Volume Levels
Rekt Capital explains he’ll be paying extra attention to seller volume in order to determine whether or not there are any potential reversals in store for the leading cryptocurrency. Seller volume needs to reach levels similar too previous price reversals before any major movements take place according to Rekt Capital’s analysis.
At present it appears as though Bitcoin may be headed towards some choppy waters over the coming weeks as it teeters precariously between support and resistance levels identified by analysts such as Rekt Capital