Rekt Capital: Bitcoin may repeat the 2021 scenario and fall by 55%

Bitcoin may repeat the bearish pattern of 2021, which then ended in a drop of more than 50%. According to him, a macro structure similar to a descending triangle is forming on the monthly chart of BTC, which in the previous cycle led to a 55% price collapse.

The analyst explains that such figures begin with a sharp overbought. In 2021, it was a 100% increase, after which the market went into a downward phase. This time, the recovery was less pronounced, but it was followed by another wave of growth, after which the price began to form a sequence of lower highs. In his opinion, if the early stage of the bear market is indeed forming, the current «higher low» will not be maintained.

Rekt Capital calls $ 84,552 the key support level. If bitcoin falls below this level, which forms the base of a macro-descending triangle, it could signal a deeper correction. At the same time, breaking through the upper boundary of the triangle, which is formed by a downward trend line, may indicate a change in the market in favor of the bulls.

The analyst’s chart shows that the loss of triangle support in 2021 was a turning point for the market. He emphasizes that until the price overcomes the downtrend line, there are more arguments in favor of repeating the scenario of the last cycle than signals of recovery.

At the time of publication, Bitcoin was trading at $ 84,037, down 4.58% from the previous day.