Double Top Formation Confirmed in Bitcoin: What’s Next for BTC Price?

• An analyst had already warned on August 7th, “If BTC falls below $26,000 by mid-September, a Double Top might be forming. A drop below $26,000 would confirm the Double Top.”
• Rekt Capital cautioned traders, “It’s important not to get trapped within this drop wick (below $26,000).” On a more positive note, the analyst pointed out the inverse head and shoulders pattern that has emerged on Bitcoin’s weekly chart.
• Van de Poppe delved into the historical and cyclical aspects of Bitcoin’s price movements, noting that August and September have traditionally been challenging months for Bitcoin, especially in the years before halving events.

The renowned analyst who stated that the double top formation in Bitcoin has been confirmed predicts further downside for BTC, but this correction might be the last one!

Analyst Shares Double Top Formation in Bitcoin

Yesterday, Bitcoin’s weekly close happened below $26,000, raising concerns among analysts and traders. While this move seems to confirm the double top formation on the weekly chart, it could also signal more downside for the leading cryptocurrency.

Rekt Capital, a well-known figure in crypto analysis, took to Twitter to share their views, saying, “BTC has officially closed below the weekly ~$26,000 support. Technically, BTC has initiated the process of confirming this Double Top formation. If it turns $26,000 into new resistance, the breakdown is likely to be confirmed.”

Notably, Rekt Capital has expressed concerns about this price level before. The analyst had already warned on August 7th, “If BTC falls below $26,000 by mid-September, a Double Top might be forming. A drop below $26,000 would confirm the Double Top.”

Looking deeper into potential price movements, Rekt Capital speculated that breaking the $26,000 base could lead Bitcoin down to around $22,000. The analyst emphasized the importance of observing this week’s price action, saying, “If we see a weekly close below $26,000 and a breakdown after the rejection of $26,000, that’s when we would likely confirm the double top.”

However, it’s not all gloomy. Rekt Capital cautioned traders, “It’s important not to get trapped within this drop wick (below $26,000).” On a more positive note, the analyst pointed out the inverse head and shoulders pattern that has emerged on Bitcoin’s weekly chart, noting that it occurred around the middle of this year, which could potentially indicate the bottom of the upcoming Bitcoin move.

Decentrader shared their views on the current state of the crypto market, asking, “Is this the start of the drop or the start of a more profound retracement?” They also highlighted the potential of price movements, saying, “Bitcoin Liquidity Map: There’s significant liquidity at 3x, 5x, 10x between $23,500 and $21,600. If the price drops to $23,500, we could witness a rapid liquidity increase pushing the price lower.”

Is This the Final Correction?

Another respected analyst, Michaël van de Poppe, provided a comprehensive historical perspective. He emphasized that September has historically been a challenging month for Bitcoin, highlighting, “Bitcoin has a level to hold to prevent a significant breakdown. Bitcoin is currently holding a crucial support level, which is around $25,500.”

Van de Poppe delved into the historical and cyclical aspects of Bitcoin’s price movements, noting that August and September have traditionally been challenging months for Bitcoin, especially in the years before halving events. In August 2015, Bitcoin experienced a significant correction towards the 200-EMA but managed to stay above it. A similar pattern was observed in August 2019, with a major correction followed by a smaller one in November 2019.

Van de Poppe drew parallels between the current market cycle and the 2015 cycle and suggested that the current market could mirror the 2015 cycle, especially considering the influx of new institutional participants. If this connection holds, the current decline could be the last correction before a potential recovery.