Renowned cryptocurrency analyst Rekt Capital recently analyzed Bitcoin's (BTC) price action on Twitter and expressed concerns about BTC's ability to break through key resistance levels.
In a series of tweets, the analyst highlighted the importance of two key levels and the possible consequences of not exceeding these levels.
According to Rekt Capital, the most vital level for Bitcoin for several weeks has been hovering around $27,600. However, despite several attempts, BTC has struggled to regain this level, raising concerns among traders and investors. Adding to the bearish trend, BTC recently lost support around $26,800 on a daily basis.
Rekt Capital pointed out that the failure of Bitcoin to regain these key levels has led to an alarming trend of losing supports and turning them into tough resistances.
Rekt Capital said that Bitcoin also confirmed the bearish head and shoulders pattern by breaking down from the neckline and turning it into a new resistance. He warned that if Bitcoin fails to recapture the $26800 level, it could lead to a deeper decline towards the $20000 levels.
— Rekt Capital (@rektcapital) May 25, 2023
The analyst said that if the BTC price rebounds from the $26,800 level in a bullish attack, it would mean that this bounce is a bull trap.
*Not investment advice.