An analyst who continues to build his following with lengthy Bitcoin (BTC) calls is warning that the crypto king could face a major correction similar to what happened about eight years ago.
Pseudonymous analyst Rekt tells his 345,100 Twitter followers that Bitcoin appears to be trading like the price action of 2015, when it retested diagonal resistance as support before a bull market emerged.
In 2015, Bitcoin lost about 38% of its value in a month prior to launching a parabolic rally.
says Rekt,
“If BTC experiences a 2015-esque retest of the macro downtrend, then the price could fall even deeper than what we have seen so far.”
According to Rekt, Bitcoin could dive to its main psychological support at around $20,000 as long as it trades below $27,000.
“BTC has already failed to reclaim the $28,800 level on the weekly.
And a weekly close of BTC below $27,000 would likely enable a further drop to the lows of $20,000.”
Rekt also warns that Bitcoin is sending a bearish signal on the daily time frame as it now trades below the neckline of a head-and-shoulders pattern at $27,000. According to the analyst, BTC’s inability to recoup $27,000 as support is likely to confirm the reversal pattern.
“BTC One Day Close Underneck (Black) -> Partial Failure.
Flip $27,000 to resistance -> full failure confirmation.
At the time of writing, Bitcoin is trading at $26,733.
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