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Bitcoin May Be 'Double Topping' for a Price Slide to $75K
BTC looks to be forming a double top bearish reversal pattern on the daily chart.
Jan 27, 2025, 6:52 a.m.
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What to know:
- 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 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.
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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.
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Bitcoin is now on track for its fifth consecutive weekly decline, and losing this level could open the floor for a fresh leg lower.
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- Bitcoin fell back to $66,000 on Wednesday afternoon, testing the lower end of its recent trading range.
- Crypto-related stocks reversed early gains, with Coinbase swinging from a 3% morning rise to a 2% loss and Strategy slipping about 3%.
- Surprisingly hawkish Fed minutes had the U.S.dollar strengthening, putting pressure on risk assets.
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