BTC forms a double top pattern on the 4-hour chart, analysts reveal targets
The recovery of Bitcoin (BTC) did not have the expected impact and failed to break through $60,000 even after the bullish momentum resumed. Consequently, the expectation of a bearish reversal has become the norm as analysts believe that the pioneer cryptocurrency lacks sufficient momentum to sustain the current trend. One of the analysts who believe that the price is destined to fall is Finn Oakes, who predicts that the price will return to the range of $53,000.
In the analysis, Cryptocurrency analyst Finn Oakes explained that the BTC price has now formed a double top. This happened after the BTC price broke through the $59,000 level twice, but both times failed to successfully break through this level. The double top pattern is shown on the 4-hour chart, forming a reversal pattern. This double top is unfavorable for the price and may indicate that the downward trend that started last week will continue. In this case, the bulls will face a tough battle.
Cryptocurrency analysts explain that after breaking the double top, it is now showing that $59,000 is a strong resistance level. This means that any rebound needs to successfully break through this resistance to be confirmed. Compared to the resistance level, $56,000 has now become the support level for the BTC price. This provides a narrow space of $3,000 for bulls and shorts to compete for dominance and drive the price pump. Otherwise, sideways movement may continue.
Given the double top formation on the 4-hour chart, Cryptocurrency analysts expect the price to drop again. In the first scenario, if the BTC price falls below the support level of $56,000, the downward trend is expected to reach the level of $53,000. However, if the downward momentum does not stop, the decline is far from over. In this case, the chart shows the price dropping below $53,000 and heading towards $52,000. However, this seems to be the worst-case scenario rather than the expected target.
In addition, due to the rise in Trading Volume during the downward trend, analysts believe this indicates long selling behind the scenes, which could lead to a price decline. "The increase in volume during the recent days of decline indicates strong selling pressure. This reinforces the current downward trend," Oakes said. The current BTC price is struggling to maintain the level of $58,000. However, according to the data, BTC still pumped 1.08% in the past day.
(Data Source: Scott Matherson)
