• Crypto analyst Rekt Capital attempts to answer if Bitcoin (BTC) could hit $22,000 next month.
• He believes that a Double Top breakdown pattern could lead to -10% price retracement in September.
• If this were to happen, BTC would drop to ~$22,200.
Crypto Analyst Unpacks Important Question for Bitcoin Traders
A widely followed crypto analyst is trying to figure out how low Bitcoin (BTC) can go after its recent market tumble. Pseudonymous crypto trader Rekt Capital is attempting to answer the question of whether BTC could hit $22,000 in September.
BTC August Drawdown in History
To start with, Rekt Capital looks into what was the worst BTC August drawdown in history. The results show that it was -17% in 2014 and -18% in 2015. Currently ,in 2023, BTC is down by -16%. If it were to drop another -18%, it will go down to ~$24,700.
Double Top Breakdown Could Lead To Further Losses
According to Rekt Capital, a double top breakdown pattern might cause even further losses for BTC beyond the expected -18%. This would result in a single-digit percentage drawdown of around 10%, taking the king crypto down to ~$22,200 at the end of September.
Current Price Of Bitcoin
At time of writing, BTC is worth $25,915.
In conclusion, this analysis from Rekt Capital suggests that if certain factors come together as predicted then we could see Bitcoin dropping as low as $22k by end of September 2021 due to the double top breakdown pattern coupled with an additional 10% drawdown over the course of next month