Will BTC Crash To Fill The Gap At $19,500?

Down arrow with a rocket falling to the ground and spread bitcoins on a red background. Decreased value volatility. Downtrends in stock and cryptocurrency markets. 3D render illustration

Bitcoin (BTC), the leading cryptocurrency on the market, continues to show flat price action. However, a notable development is on the horizon as BTC is struggling to sustain the consolidation above the critical $26,000 level. This could potentially create challenges for the cryptocurrency’s performance.

Bitcoin is currently trading at $25,700 and is on the verge of a significant breakout. This breakout can put pressure on short positions and liquidity pools positioned above it, or close gaps at lower Chicago Mercantile Exchange (CME) levels.

Even more worryingly, these gaps are close to what many experts believe will be the bottom of the Bitcoin bear market.

Bitcoin double top formation and impact on price

Renowned crypto analyst Rekt Capital recently shared valuable insights into Bitcoin’s price action and charts, and shed light on the cryptocurrency’s likelihood of filling the CME gap at $19,500 and $20,500.

In a YouTube Video Rekt Capital, uploaded on September 5, emphasizes the importance of BTC’s weekly chart in understanding its recent movements.

According to analysis by Rekt Capital, Bitcoin’s weekly chart shows a double-top formation at $30,800, a pattern followed by symmetric bearish moves in the past. Based on this observation, Rekt Capital suggests that the current price action could potentially open the doors to close the CME gap at $19,500 in the near term.

BTC’s CME gap in the $20,000 area. Source: Rekt Capital on X.

Another factor highlighted by Rekt Capital is the importance of the $26,000 support level that Bitcoin is currently losing.

The analyst believes that this loss could further amplify BTC’s downside and bring it closer to the CME gap. Adding to the concern, Rekt Capital points to a bearish fractal released on Aug. 30, with Bitcoin’s weekly chart making a lower high, signaling a continuation of the downtrend.

If it breaks below $20,000 again, Rekt Capital warns that a head and shoulders pattern could potentially form on the weekly chart of BTC. While the pattern’s right shoulder is not yet complete, the overall structures suggest that the pattern may eventually be fulfilled.

Rekt Capital’s analysis underscores the importance of BTC’s current price action and charts, highlighting possible scenarios such as closing the lower CME gap and clearing the obstacle created by the already-filled gap at $28,000.

The outcome of these scenarios for the dominant cryptocurrency in the market has yet to be determined. What is evident, however, is the prevailing bearish sentiment that has gripped the Bitcoin market and raised concerns among investors.

BTC is down 0.8% over the past 24 hours and down 7.8% over the seven days, with its current trading price dipping below the $25,800 mark.

BTC’s potential head and shoulders pattern can be seen on the weekly chart. Source: BTCUSDT on TradingView.com

Selected image from iStock, chart from TradingView.com

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers