Renowned crypto analyst Rekt Capital is cautioning traders that Bitcoin (BTC) is likely to experience a further decline before bouncing back.
Speaking to his 476,200 followers on the social media platform X, the pseudonymous crypto trader Rekt Capital stated that BTC’s technical analysis indicates that the leading cryptocurrency has already reached its local peak.
Confirming the recent upward movements of Bitcoin, Rekt Capital pointed out the formation of a local topping structure in the past few months, with a new Lower High emerging.
Analyzing BTC’s recent price action, the analyst noted similarities to a pattern observed earlier this year, likening the current cluster of Bitcoin price movements to the local topping structure seen in mid-March and mid-April.
Drawing on historical data, Rekt Capital highlighted that Bitcoin typically struggles to break out immediately after halving events, which occur roughly every four years and reduce miners’ rewards.
Looking ahead, the analyst predicted that Bitcoin has significant gains in store, despite the ongoing pullback. Last week, Rekt Capital had suggested that BTC was on the brink of a historic breakout.
At the time of writing, BTC is valued at $66,600, reflecting a 5% decrease in the past 24 hours.
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