A closely followed analyst is warning Bitcoin (BTC) investors that the king crypto could be days away from a sell-off event.
Pseudonymous analyst Rekt tells his 342,300 Twitter followers that Bitcoin is still respecting its diagonal resistance and could witness bearish price action in the short term.
According to Rekt, the inability of Bitcoin bulls to push BTC higher may be a sign that the king crypto is setting up for a significant retracement.
“BTC continues to struggle at the higher high resistance (black).
BTC will continue to be non-trending as it consolidates between the higher high resistance and the green support at $27,000
Drop into green could occur soon.
Lose that -> deeper retrace confirmed.”
Rekt also warns that Bitcoin is starting to form a bearish reversal structure on the daily chart. According to the analyst’s chart, a break of support at around $27,000 could confirm the reversal pattern.
“BTC double tops tend to be symmetrical patterns.
The first part of the pattern formed within 10 days.
Currently, the second part of the pattern has formed within seven days.
[The] next handful of days will be crucial in determining whether a double top fully forms.”
The crypto strategist also presents the possibility of BTC mirroring its 2015 market structure when it witnessed a deep correction after retesting a bear market resistance into support.
Should Bitcoin repeat history, the analyst says that the pullback could be the start of a strong uptrend.
“Historically, when BTC has broken the macro downtrend, a macro uptrend followed.
In 2015 however, there was first a BTC retest of the downtrend before upside.
If a dip occurs this April or May, it could be one of the last visits below ~$25,000 for several months.”
At time of writing, Bitcoin is trading for $27,846.
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