BTC invalidates double top formation
- Bitcoin price rose to around $22,600 on Sunday after rising 11% from below $20,000.
- Technical analyst Rekt Capital says Bitcoin has canceled a double top formation.
- A successful retest of the $21,700 zone could see BTC continue short-term upside recovery.
Bitcoin has retested the $22,600 level after falling sharply to trade below $20,000 last week.
While the benchmark cryptocurrency is currently trading around $22,350 and is up 9% in the last 24 hours, the short-term outlook suggests an invalidation of a bearish pattern that had bears looking for another leg towards the low $19,000s.
Bitcoin Price Prediction: What Happens After Weekly Close of $21,770?
Crypto analyst Rekt Capital has updated its BTC price outlook after the coin’s value broke below $20,000.
This last one #BTC drop to ~$19550 and this recent recovery to ~$22600 just shows how a great opportunity can quickly pass by and then just as quickly pass by$BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) March 13, 2023
According to the technical analyst, the weekly close above $21,770 could provide fresh bullish impulse as it has canceled a double top formation on the weekly chart.
“It’s amazing how the #BTC Weekly Close from last week invalidated the Double Top formation. Double Top first played out to see price drop to the $19000s, but eventually, $BTC Weekly closed above $21770 to cancel the Double Top“,” the popular cryptanalyst shared via Twitter.
As mentioned above, Bitcoin price rose to highs of $22,600 across major cryptocurrency exchanges late Sunday. This was after positive news surrounding the collapsed Silicon Valley Bank boosted equity futures and saw the de-pegged USDC bounce to just a cloud of its US dollar parity.
Trading on Monday has seen some profit-taking deals force BTC to give up gains. However, the flagship cryptocurrency has retested its range low as immediate support. It is possible BTC/USD will continue this consolidation within reach, Rekt Capital has predicted.
Looking at the technical picture as seen on the daily chart, we see another successful daily close above $21,700. While Bitcoin may continue higher, a pullback to the level may occur. Breaking up from this zone again could catalyze further upside momentum, with the next target in the $23,400 region.
#BTC has performed a strong Daily Close above the $21770 level$BTC could see a drop soon to the same level for a retest attempt
Successful retest there and BTC would enjoy the continuation to the upside#Crypto #Bitcoin pic.twitter.com/7VU0Zf73KN
— Rekt Capital (@rektcapital) March 13, 2023
