According to Rekt Capital, a popular crypto analyst, Bitcoin (BTC) is currently displaying a traditional technical pattern that suggests a decline in prices. Check out the latest reports about this below.
Bitcoin’s latest moves
Rekt Capital informed their 351,000 followers on social media platform X that BTC is close to completing a full double top pattern, having experienced fatigue near the $30,000 mark. The analyst had previously predicted that if the pattern were to develop, then BTC’s value would likely drop to approximately $22,000.
The analyst said in early August,
“If BTC drops to ~$26,000 by mid-September then a double top (DT) may be forming.
A breakdown from ~$26,000 would validate the DT.
And a measured move for the DT would be ~$22,000.
Worth noting but still very early stages and lots can still change in the meantime.”
The analyst has observed that BTC is currently hovering around the $26,000 mark and believes that the double top pattern is now in play. This pattern is slowly but surely taking shape.
To gain a better understanding of Bitcoin’s traditional four-year cycles, Rekt zooms out and examines yearly candles. He notes that the four-year cycle is largely based on the halving event, which cuts BTC miners’ rewards in half.
The cycle starts in the year after BTC’s halving (year one) and concludes during the year of the halving (year four), as per the online publication the Daily Hodl.
Based on analysis, the third year of each cycle typically sees both upper and lower wicks on its candle.
This is because the price historically trades sideways above and below the yearly open. However, Rekt believes that Bitcoin is not likely to drop below its yearly open this time around.
In the third BTC Candle, both upside and downside wicks tend to occur. Data from 2015 and 2019 indicates that upside wicks tend to happen later in the year, while downside wicks happen earlier in the year. Currently, it seems improbable that BTC will form a downside wick in 2023.
