According to technical analysis, Bitcoin (BTC ($98,974.09)) may be forming a double top reversal pattern that could push prices as low as $75,000.
Bitcoin Facing Potential ‘Double Top’ Reversal, Could Drop to $75K
A double top formation occurs when an asset forms two consecutive peaks at a similar price level and these peaks are separated by a pullback.
If the asset fails to break above the previous high and then breaks through the neckline support, it signals a possible trend reversal from bullish to bearish.
Currently, Bitcoin has pulled back below $100,000 after failing to sustain gains above the December highs. This price action sees BTC forming a double top with the neckline support at $91,300.
If Bitcoin closes below $91,300 on the daily chart, it will confirm a downtrend reversal and potentially set the stage for a drop to $75,000. This target is derived using the measured move method, which is the gap between the twin tops and the neckline subtracted from the neckline level.
Traders are closely watching Bitcoin’s support levels to gauge whether the double top formation will confirm a breakdown. A successful hold above $91,300 could invalidate the formation, while a decisive break below it could signal more downside pressure.
The market is at a critical point as Bitcoin has recently failed to hit new highs, and price movements in the coming days could determine whether BTC continues its bull run or sees a deeper correction.
*This is not investment advice.
Continue Reading: Is Bitcoin Forming a Double Top Formation? Here is the Level to Watch Out For!
