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• Bitcoin (BTC) is positioned for additional draw back as a brand new Weekly Close beneath the 200-week transferring common signals.
• BTC rejecting from above $26k would welcome bears to the social gathering as double-confirmation of the breakdown.
• According to crypto analyst Rekt Capital, the 200-week MA is a strong resistance zone. 

As Bitcoin bulls face rejection from above $26k, a top analyst has identified the benchmark cryptocurrency’s worth faces recent draw back strain.

BTC worth is at the moment 2.4% up up to now week, however has failed to interrupt previous key resistance round $26,600. The breakdown to lows of $24,800 final week amid unfavorable regulatory headlines seems to have solely emboldened bears additional.

Bitcoin positioned for draw back

According to crypto analyst Rekt Capital, the technical outlook for BTC suggests extra weak spot is probably going. This is after a brand new weekly shut beneath the 200-week transferring common, which signals a “double confirmation of [a] breakdown,” the analyst famous.

Last week, Bitcoin worth recovered from lows of $24.8k after the market reacted sharply to the SEC’s lawsuits towards crypto exchanges Binance and Coinbase. Commenting after the upside, Rekt Capital suggested that Bitcoin had “run straight into the 200-week MA”

He famous that if bears managed to show this zone into new resistance, there was chance BTC may see a “two-step breakdown confirmation.” Such a worth situation was prone to end in additional draw back strain.

“Technically, BTC is positioned for downside. Why? Because it has produced another, new Weekly Close below the 200-week MA. As a result, $BTC has shown double-confirmation of breakdown from the 200-week MA. Continued rejection here could send price lower,” he tweeted on Monday, pointing to final week’s prediction.

Here’s a chart the analyst shared, displaying Bitcoin’s rejection at each a downtrend line and the 200-week MA.

If Bitcoin provides up the $26k stage once more, a run to June lows may open up room for extra losses. However, as BitMEX founder and former CEO Arthur Hayes identified final week, its doubtless crypto will hit the ache of an prolonged sideways motion earlier than a brand new set off units up an “autumn rally.”

As CoinJournal reported, the BitMEX founder believes the set off shall be retail buying and selling, and a giant risk is that this subsequent bull market is led by the Chinese dealer. BlackRock submitting for a spot Bitcoin ETF is also a big tailwind in coming months.