Bitcoin’s price movements are always under the microscope. Recently, some analysts from Rekt Capital have observed a potential Double Top formation on Bitcoin’s weekly timeframe. This pattern, often seen as a bearish reversal indicator, has caught the attention of many in the crypto community.
Interestingly, while the Double Top seemed evident, Bitcoin did not undergo a Weekly Close below the crucial $26,000 mark. This specific price point is essential for the validation of the Double Top. Without this confirmation, the pattern remains technically unvalidated, leaving the possibility of further downside continuation uncertain.
Currently, Bitcoin’s price is hovering around the $26,000 mark, which is the foundational base of the Double Top. This suggests that the cryptocurrency is attempting to find solid ground at this level.
However, it’s worth noting that Bitcoin has shown some bearish signs elsewhere. Specifically, it has closed below several key bullish momentum indicators. The green 21-week EMA, blue 50-week EMA, and orange 200-week MA have all seen Bitcoin’s price dip below them. This move indicates the start of a breakdown process from these moving averages.
Doge2014 raises 450K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!
Show more +If Bitcoin manages to maintain its support at $26,000, some believe a rebound could be on the horizon. This potential bounce-back might lead Bitcoin to the moving average area, turning these averages into new resistance points. A significant cluster of resistance is observed in the $26,900 to $27,700 range. Should Bitcoin face rejection at these levels, its price might retreat back to the vicinity of $26,000.
In such a scenario, the Double Top’s Measured Move, a concept shared by part of the community earlier this month, could come into play. This move would provide further insights into Bitcoin’s future price trajectory.
In conclusion, while the Double Top formation has stirred discussions and speculations, its validation remains in limbo. Bitcoin’s journey, as always, is paved with uncertainties, and only time will reveal its next major move.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
