BTC price nears $26K amid warning Bitcoin sell pressure can ‘double’
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For popular trader and analyst Rekt Capital, the picture was bleak — a double top formation for BTC/USD in 2023, and a complete lack of support from trend lines and moving averages during the breakdown.
“BTC formed its Higher High at ~$31000 on inclining volume. But price formed the second half of its Double Top on declining volume,” he wrote in part of multiple X posts.
An accompanying chart showed trading volume on daily timeframes, as Rekt Capital warned that capitulation had likely not yet matched previous sell-offs.
“Though there was a small breakout in seller volume on this crash… It’s still nowhere near the Seller Exhaustion volume levels (green box) of previous BTC reversals (yellow circles),” he explained.
“In fact, current Seller Volume would need to probably double to reach those Seller Exhaustion volume levels that prompted price reversals in early & late March as well as mid-June.”
Others were more optimistic, including trader CryptoCon, who identified key two completed tasks common to successful BTC price rebounds during bull market retracements.
These involved relative strength index (RSI) values bouncing at the 0.382 Fibonacci retracement level.
“Every cycle, the Weekly Bitcoin RSI experiences a fake out of the bull market start line, some lasting longer than others,” he explained.
“And every one of them makes a revisit to the .382 Fibonacci retrace of the move. With the latest drop, both of those things are now complete.”
Rekt Capital noted that daily RSI was now at its most “oversold” since June 2022, with only two episodes in Bitcoin’s history, both in bear markets, beating it.
Looking ahead, QCP meanwhile flagged next week’s commentary from Jerome Powell, Chair of the United States Federal Reserve, as the next potential source of volatility.
“We believe that a lot now rests on Powell’s speech at Jackson Hle next week,” it concluded.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
