A much-followed crypto analyst takes a deep dive into Bitcoin’s (BTC) latest market drop and tries to discern just how low it can go.
In a message shared With its 350,200 followers on social media platform X, pseudonymous crypto trader Rekt Capital is trying to answer a simple question: could BTC hit $22,000 in September?
“Could Bitcoin Crash To $22,000 In September?
To answer this question, we must first focus on August.
What was the worst August BTC pullback in history?
-17% in 2014 and -18% in 2015.
Currently, in 2023, BTC is now down 16%.
If BTC fell -18% in August, BTC would drop to ~$24,700.
But that may not be the end of the backlash.
Why?”
The analyst gives two reasons why he thinks this may not be the end of BTC’s troubles.
“Two reasons:
1) BTC forms a double top,
And 2) BTC tends to experience a single digit drop in September.”
A double top is a bearish reversal pattern in technical analysis. It occurs when the price of an asset peaks twice, with a small drop in between. The pattern is confirmed when the price drops below the previous low between the two highs.
According to Rekt Capital, confirmation of the double top could result in double-digit percentage losses for BTC, pushing the king crypto to $22,000.
“So if BTC finds another -10% in September, for example…
That would mean the price would fall to ~$22,200
Then that would roughly match the Measured Move target for the Double Top breakdown of ~$22,000.”
BTC is worth $25,915 at the time of writing.
Don’t miss a single beat – Subscribe to receive email alerts delivered straight to your inbox
Check price action
follow us on Twitter, Facebook And Telegram
Surf to the Daily Hodl mix
Featured image: Shutterstock/Jorm S