dailyhodl.com
A widely followed crypto analyst is diving deep into Bitcoin’s (BTC) latest market tumble, trying to discern just how low it can go.
In a post shared with his 350,200 followers on the social media platform X, pseudonymous crypto trader Rekt Capital attempts 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 need to first focus on August.
What was the worst BTC August drawdown in history?
-17% in 2014 and -18% in 2015.
Currently, in 2023, BTC is now down -16%.
If BTC were to drop -18% this August, BTC would drop to ~$24,700.
But that might not be the end of the retrace.
Why?”
The analyst gives two reasons why he thinks this might not be the end of BTC’s woes.
“Two reasons:
1) BTC is forming a Double Top,
And 2) BTC tends to experience single-digit drawdown in September.”
A double top is a bearish reversal pattern in technical analysis. It occurs when an asset’s price hits a high point twice, with a small decline in between. The pattern is confirmed when the price falls below the previous low between the two high points.
According to Rekt Capital, confirmation of the double top could result in double-digit percentage losses for BTC – taking the king crypto down to $22,000.
“So if BTC retraces, say, an additional -10% in September…
That would mean price would drop to ~$22,200
Then that would approximately match the Measured Move target for the Double Top breakdown of ~$22,000.”
BTC is worth $25,915 at time of writing.