A broadly adopted crypto analyst is diving deep into Bitcoin’s (BTC) newest market tumble, attempting to discern simply how low it will possibly go.
In a put up shared along with his 350,200 followers on the social media platform X, pseudonymous crypto dealer Rekt Capital makes an attempt to reply a easy query – might BTC hit $22,000 in September?
“May Bitcoin Crash to $22,000 In September?
To reply this query, we have to first deal with August.
What was the worst BTC August drawdown in historical past?
-17% in 2014 and -18% in 2015.
At present, in 2023, BTC is now down -16%.
If BTC have been to drop -18% this August, BTC would drop to ~$24,700.
However that may not be the top of the retrace.
Why?”
The analyst offers two explanation why he thinks this may not be the top of BTC’s woes.
“Two causes:
1) BTC is forming a Double High,
And a pair of) BTC tends to expertise single-digit drawdown in September.”
A double prime is a bearish reversal sample in technical evaluation. It happens when an asset’s worth hits a excessive level twice, with a small decline in between. The sample is confirmed when the value falls beneath the earlier low between the 2 excessive factors.
In line with Rekt Capital, affirmation of the double prime might end in double-digit proportion losses for BTC – taking the king crypto all the way down to $22,000.
“So if BTC retraces, say, an extra -10% in September…
That might imply worth would drop to ~$22,200
Then that might roughly match the Measured Transfer goal for the Double High breakdown of ~$22,000.”
BTC is value $25,915 at time of writing.
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