Bitcoin's short-term price action has been heavily discussed in recent weeks. Renowned crypto strategist, Rekt, is the latest to offer his thoughts, this time appearing to suggest a potential drop in the near future. The analyst tells his 342,300 Twitter followers that Bitcoin is still respecting its diagonal resistance and could witness bearish price action shortly.

Rekt also suggests that Bitcoin is in the process of forming a bearish reversal structure on its daily chart, and a break of support at $27,000 could confirm this crossover. If this bearish reversal does transpire, Rekt believes that the sell-off could mirror the 2015 market structure, where BTC pulled back and then kicked off a strong uptrend. Currently, BTC is trading at just over $27,800, and many will be watching closely to see if this prediction comes to fruition.

The inability of Bitcoin to break out of its current resistance has led Rekt to believe that a drop into the $27,000 range is near; if this happens, the analyst suggests that we will have confirmation of a deeper retrace. This is not yet certain, however, and Rekt warns that the outcome of the next few days is critical in determining whether or not the reversal occurs.

Given Bitcoin's incredibly volatile nature, it's difficult to predict how it will respond to any given event. The crypto strategist's analysis can, thus, prove invaluable in alerting investors to potential pitfalls and helping them make more informed decisions. Therefore, it's worth keeping a close eye on Rekt's predictions to see if his bearish analysis transpires. But even if it doesn't, investors should always be cautious when it comes to trading cryptocurrencies, as prices can change drastically in a matter of minutes.



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