Although the current price dynamics of Bitcoin (BTC) give hope for a continuation of the upward trend, Rekt Capital I am bearish.
A well-known analyst in the crypto community believes that the current market structure is similar to what was observed at the end of 2019 – beginning of 2020.
Rekt Capital is waiting for BTC at $20,000
As you can see from the chart below, in 2019, Bitcoin was trading in a narrow triangle with a top around $10,000. As a result, the main cryptocurrency managed to break through resistance and enter previously uncharted territory.
Source: Twitter/X
However, this optimistic scenario has some obstacles for investors who remain bullish. Before breaking out of the pattern, the BTC price returned to its lows and fell below the critical support level of $3,250.
Rekt Capital believes the asset could exhibit similar price action as it approaches the upper end of its current channel. In this case, BTC will return to the $20,000 level or even the current cycle lows of $15,000.
“As for current prices, there is now a risk that they represent a 2023 top. But after the decline, these same prices will represent a re-accumulation range (red) before rising into a parabolic uptrend (green),” the analyst commented.
There’s still hope for the bulls
Although this development hints at short-term losses for BTC holders, the analyst is very positive in the long term. First, Rekt Capital believes that the coming decline could be the “last-ever pullback” to the $20,000 mark.
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Secondly, the analyst is confident that after the halving, Bitcoin will return to the previous historical maximum or even update it.
“The next ~6 months could see the last ever pullback to the $20,000 lows (orange) and in the 2 months leading up to the halving we are likely to see stronger volatility to the upside (light blue). In the period before the halving, we expect a lot of volatility, both downward and upward,” he concluded.
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2023-10-07 09:38:00
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