Top Analyst Warns Bitcoin Could Confirm Bearish ‘Double Top’ if Weekly Close Below This Level
The Twitter user Rekt Capital, who shares technical analysis of cryptocurrency prices, tweeted an analysis of Bitcoin’s (#BTC) recent price action. Rekt Capital stated that Bitcoin may continue to oscillate around $26,000 until the weekly close. According to the tweets, the most important factor will be where Bitcoin’s weekly close lands relative to the $26,000 level.
In a follow-up tweet, Rekt Capital emphasized that if Bitcoin manages to hold the $26,000 level, then the “Double Top” pattern, often considered a bearish indicator, will not be validated. The expert is keenly observing how the weekly close will unfold.
The Double Top pattern is a technical analysis chart formation that signals a bearish reversal in an asset’s price. It is characterized by two consecutive peaks that are roughly equal in price, separated by a moderate trough. This pattern resembles the letter ‘M’. After the second peak, if the price falls below the support level (the lowest point between the two peaks), it’s generally considered a confirmation of the bearish trend. Traders often see this as an indication to sell, as it suggests that the asset has reached a high point and is likely to decline.
In the context of Rekt Capital’s analysis, a weekly close below the $26,000 level for Bitcoin would confirm the Double Top pattern, signaling a potential bearish reversal. This makes the $26,000 level a crucial point to watch in the upcoming weekly close.
Most recently, Rekt Capital noted that despite Bitcoin experiencing some upside beyond $26,000, it has fallen back below this level, indicating that $26,000 is still acting as a resistance point. A weekly close below this level would confirm the Double Top pattern, although such a close has not occurred yet.
The insights from Rekt Capital suggest that the $26,000 level is a critical point for Bitcoin, and the weekly close relative to this level could provide significant clues about the cryptocurrency’s future trajectory.
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