Crypto Trader States That BTC Will Drop Below $20K This Month
The crypto market leader, Bitcoin (BTC), experienced a drop in price over the last 24 hours according to CoinMarketCap. At press time, BTC’s price is down 0.85% and is trading at $21,705 as a result. This 24-hour drop in BTC’s price has added to its negative weekly performance. Currently, BTC’s price is down more than 7% over the last 7 days.
The crypto trader, Rekt Capital, uploaded a video on Youtube yesterday wherein he shared his technical analysis for BTC. The trader started the video off by highlighting the fact that BTC’s price is seeing its first dip of 2023, which can be seen on its monthly chart.
CoinMarketCap shows that BTC’s price is currently down 6.21% this month. This is after BTC printed a 39.79% monthly gain in January of this year.
Monthly chart for BTC/USDT (Source: TradingView)
Rekt Capital added that BTC’s price will likely target the psychological $20k level this month. This level is also the range low of the current price channel established on BTC’s monthly chart.
In addition to this, there are two flags that have signaled which are confirmation of a bearish reversal. The first flag that is confirmation of a bearish reversal in BTC’s price is BTC’s price being rejected by the $23,4k resistance level. The second confirmation is this past week’s red weekly candle.
Daily chart for BTC/USDT (Source: TradingView)
Lastly, the trader highlighted the head and shoulders pattern that is currently forming on the market leader’s daily chart. Should this pattern play out, then Rekt Capital believes that BTC’s price will drop to the $18,1 zone.