Bitcoin (BTC/USD) is trading around $19,900 as prices bounce from intraday lows. While BTC could yet break above $20,000 and attempt further recovery, a top crypto analyst says bears might still have the upper hand.
Bitcoin price prediction: BTC confirms bearish Double Top formation
Bitcoin risks a retest of support near $19k, crypto analyst and trader Rekt Capital has noted. While still bullish on Bitcoin revisiting the macro downtrend line from below, the analyst says the latest weakness could see bears target fresh lows near mid-January prices. In his view:
“BTC has reached the $19,700s after confirming the breakdown from its bearish Double Top formation. However, a Double Top technical target for $BTC is around the low $19,000s. So some additional downside is not out of the question.”
According to the analyst, this outlook for Bitcoin price follows the loss of $21,700 as a support validation point for bulls. The failure for price to hold above this point validated a Double Top formation, and from a technical analysis perspective, BTC may now break to the lows of $19,000s for if the technical picture suggested by the pattern completes.
Rekt Capital shared this prediction for Bitcoin price in a forecast shared on Twitter before today’s breakdown to $19,600 lows across major exchanges. He had highlighted the double top formation on Bitcoin’s weekly chart, noting the potential decline as bulls wrestled with resistance around $22,444.
From a technical point of view, this level had acted as an important “reference point” for buyers. However, as Rekt appears to have correctly predicted, the continued failure to break higher risked Bitcoin price dropping to $21,700.
Here’s the chart the analyst shared earlier this week (on 7 March).
“Indeed, BTC rejected from orange resistance to drop to ~$21700 (blue). $21.7k key support right now. Can price form a Higher Low relative to mid-Feb lows? Because if not, there is a possibility of a Double Top forming, with loss of $21700 as validation.”
What next for Bitcoin as price dumps on multiple negative news?
Over the past three days, Bitcoin has traded lower amid multiple negative triggers. That included the troubles around Silvergate Capital (NYSE: SI), a negative catalyst that only got more damaging with news of its impending shut down. As Invezz covered on Monday, Bitcoin and crypto had seen a generally “uninspired” start to the week following the Silvergate Bank reports.
On Thursday, more bad news for crypto surfaced with the New York Attorney General filing a lawsuit against crypto exchange KuCoin for offering unregistered securities. The lawsuit included Ethereum as one of the security tokens. Also triggering bloodbath on the crypto streets was reports that the US government wanted to increase taxes levied on Bitcoin mining and uncertainty around Silicon Valley Bank.
Binance CEO Changpeng Zhao tweeted about these events that all happened in the past 24 hours. He noted that despite all the negative headlines, Bitcoin was “still producing blocks.”
So what does Rekt Capital predict for Bitcoin in the short term? According to the analyst, the rejection to latest lows higlights a potential third straight hurdle at the quarterly close. However, he notes that BTC still has time to print a quarterly close above the critical $20,000 zone.