A closely followed analyst is warning that Bitcoin (BTC<\/a>) is forming a bearish pattern last seen just before the crypto king collapsed in late 2021.<\/p>\n Pseudonymous analyst Rekt Capital tells his 350,800 followers on the social media platform X that Bitcoin is very close to breaking down from a bearish double top pattern.<\/p>\n According to the crypto strategist, a sell-off event with increased volume would ignite the breakdown process.<\/p>\n \u201cBTC is on the cusp of validating its double top formation.<\/em><\/p>\n A breakout on seller volume and a convincing loss of ~$26,000 followed by turning it into new resistance would confirm the breakdown.\u201d\u00a0<\/em><\/p>\n Zooming out, Rekt Capital says that Bitcoin appears to be mirroring its late 2021 price action when BTC ended its last bull market after breaking down from a double top pattern.<\/p>\n \u201cIn 2021, BTC formed two clear tops akin to a double top before forming the third top at a lower high.<\/em><\/p>\n Right now, it looks like BTC has once again formed two clear tops, akin to a double top, with a potential third top forming at a lower high.\u201d\u00a0<\/em><\/p>\n Rekt Capital says that the similarities extend beyond BTC\u2019s price action. The crypto strategist highlights that key moving averages are now acting as resistance for BTC just like in 2021.<\/p>\n \u201cBecause BTC is experiencing resistance at the bull market moving averages which are located around ~$27,000-$28,000.<\/em><\/p>\n These BTC moving averages are the green 21-week EMA (exponential moving average) and the blue 50-week EMA.<\/em><\/p>\n They are acting as resistance, much like they did in 2021.\u201d\u00a0<\/em><\/p>\n The analyst goes on to say that he expects Bitcoin to bounce one more time before breaking down and witnessing a deep corrective move close to the $20,000 price area.<\/p>\n \u201cThe BTC 2021 fractal suggests BTC could soon form its third top at a lower high before rejecting there and finally losing ~$26,000 support.<\/em><\/p>\n After that, the fractal suggests that BTC would bounce but only to turn ~$26,000 into new resistance before rejecting lower.\u201d\u00a0<\/em><\/p>\n At time of writing, Bitcoin is worth $25,850.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
\n
\nCheck Price Action<\/a><\/span><\/em>
\n
\nFollow us on Twitter<\/a>, Facebook<\/a> and Telegram<\/a><\/span><\/em>
\n
\nSurf The Daily Hodl Mix<\/a><\/span><\/em>
\n<\/p>\n
![\"Image\"](\"https:\/\/pbs.twimg.com\/media\/F43vrtWWUAEhDxf?format=jpg&name=large\")
![\"Image\"](\"https:\/\/pbs.twimg.com\/media\/F43wWAJWcAAxwZ3?format=jpg&name=large\")
![\"Image\"](\"https:\/\/pbs.twimg.com\/media\/F43xY__WYAAaN4J?format=jpg&name=large\")
![](\"https:\/\/dailyhodl.com\/wp-content\/uploads\/2018\/06\/Get-Alerts-728x90.png\")
<\/p>\n