Analyst Warns Bitcoin Might Be Following Bearish Pattern Leading to Massive Collapse

A popular analyst is cautioning that Bitcoin (BTC) could be mimicking a bearish pattern from 2021 that resulted in a significant drop in value.

The analyst, known as Rekt Capital, shared with his 562,400 followers on X that Bitcoin is currently forming a macro descending triangle on the monthly chart. This pattern is reminiscent of the one seen in 2021, which preceded a 55% decline.

“Whenever we see these triangles forming, they tend to weaken over time. The initial overextension in 2021 was around 100%. While the subsequent rebound was more exuberant, it eventually led to a series of lower highs, indicating a macro downtrend. If this is the beginning of a bear market, the higher low we are currently seeing may not hold, and the macro descending triangle downtrend will prevail.”

According to Rekt Capital’s analysis, if Bitcoin falls below the support level at $84,552, which forms the base of the descending triangle, it could signal a deeper correction.

The analyst also notes that a breakout above the descending trendline would indicate a potential bullish reversal.

“Until we see a break above that downtrend, we have to consider the possibility of following the 2021 trend.”

As of the time of writing, Bitcoin is trading at $84,037, down 4.58% on the day.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox.

Follow us on X, Facebook, and Telegram.

Check Price Action and Surf The Daily Hodl Mix.

Generated Image: Midjourney