Bitcoin price prediction: BTC weekly close invalidates double top formation

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Bitcoin price prediction: BTC weekly close invalidates double top formation

By Benson Toti - min read
  • Bitcoin price rose to around $22,600 on Sunday after rallying 11% from below $20,000. 
  • Technical analyst Rekt Capital says Bitcoin has cancelled a double top formation.
  • A successful retest of $21,700 zone could see BTC continue short term upside recovery.

Bitcoin has retested the $22,600 level after dropping sharply to trade under $20,000 last week.

While the benchmark cryptocurrency currently trades around $22,350 and is 9% up in the past 24 hours, the short term outlook suggests an invalidation of a bearish pattern that had bears eyeing another leg towards the low $19,000s. 

Bitcoin price prediction: What next after weekly close at $21,770?

Crypto analyst Rekt Capital has updated his outlook for BTC price after the coin’s value successfully broke from below $20,000. 

According to the technical analyst, the weekly close above $21,770 could provide fresh bullish impetus as it has cancelled a double top formation on the weekly chart.

It’s incredible how the #BTC Weekly Close of last week invalidated the Double Top formation. The Double Top initially played out to see price drop into the $19000s, but ultimately, $BTC Weekly Closed above $21770 to cancel out the Double Top,” the popular crypto analyst shared via Twitter.

As noted above, Bitcoin price rose to highs of $22,600 across major cryptocurrency exchanges late Sunday. This was after positive news around the collapsed Silicon Valley Bank buoyed stock futures and saw the de-pegged USDC bounce to just shy of its US dollar parity.

Trading Monday has seen some profit taking deals force BTC to give up gains. However, the flagship cryptocurrency has successfully retested its range low as immediate support. It is possible BTC/USD will continue this intra-range consolidation, 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 could continue higher, a pullback to the level might happen. Breaking higher from this zone once again could catalyse further upside momentum, with next targets in the $23,400 region.