Bitcoin may be 'double topping' for a price slide to $75K
-
BTC has put in twin peaks at around $108,000 recently, hinting at a double top bearish reversal pattern.
-
A move below the double top neckline would confirm the trend change.
Bitcoin (BTC) may drop to $75,000 should it trigger a so-called 'double top' bearish reversal pattern.
A double top comprises two consecutive peaks at approximately the same price, with a trendline drawn through the low point between these peaks. The failure to break above the previous peak, followed by a subsequent decline, suggests that the uptrend is losing momentum.
So, an eventual breakdown of the horizontal trendline support, the double top neckline, is said to confirm a bullish-to-bearish trend change.
BTC has pulled back to $100,000 at the time of writing, having failed to maintain a foothold above the December high last week. In other words, BTC looks to have formed a double top, with neckline support positioned around $91,300.
A UTC close below the neckline level would confirm the bearish reversal pattern, potentially triggering a decline to $75,000. This target is calculated using the measured move method, subtracting the gap between the twin peaks and the neckline from the neckline level.
BTC's double top. (TradingView/CoinDesk)
Author
CoinDesk Analysis Team
CoinDesk
CoinDesk is the media platform for the next generation of investors exploring how cryptocurrencies and digital assets are contributing to the evolution of the global financial system.
