Crypto Daily: Bitcoin’s Double Top Pattern Anticipates Price Drop

Is BTC about to skyrocket to new historic peaks? Not quite. Yes, Bitcoin has been growing consistently for the past three days, moving from $8,500 to nearly $9,900 by the time of this writing. While some newbie traders might interpret this price dynamic as a reaction to the recent Bitcoin Halving, technical indicators don’t support it.

The $10,000 price level represents a local resistance level, and the market currently lacks the required strength to break through it. The sudden jump of Bitcoin seems to be nothing more than a rebound from the 20% drop observed after the halving event on May 12.

In the chart, we can easily spot a double top figure supporting the rebound scenario. While this reversal pattern shows during an uptrend, its formation is typically followed by significant bearish pressure. That said, we could expect BTC to fall in the upcoming sessions.

Bitcoin is often manipulated by the so-called whale players — those who open sizable positions enough to push the price up or down. However, this pattern has a record for working pretty accurately. Proof? Take a look…

In early 2019, the market faced an almost identical situation. Bitcoin consolidated around the ~$4,000 market for a long time, and then broke above triggering a massive 4.5x growth.

By the end of 2017, Bitcoin embarked itself in its world-famous bull run for 5 consecutive months until reaching ~$20,000. After that, BTC sharply corrected downwards to $6,000, and then $3,000.

So, does it mean your chances to earn money are gone? Not really. As outlined earlier this week, Bitcoin is likely to fall in the coming months to attractive buy levels, again. The next target areas for long position openings are located at $7,600 — $7,300 — $6,800.

Disclaimer: You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Cryptocurrencies are risky and may not be suitable for all investors. Ensure you understand the risks involved as you may lose all your invested capital. The past performance of cryptocurrencies is not a reliable indicator of future results.