Double-Top Price Pattern Could Potentially Sink Bitcoin to $50,000: Analyst Alert
Summary:
Repeated failures of Bitcoin to break above higher resistance levels have formed a "double-top price pattern," which could potentially lead to a significant drop to $50,000, says cryptocurrency specialist Markus Thielen of 10x Research. The concept suggests Bitcoin could move from range trading (60,000-70,000) into a "topping formation," and despite potential positive impacts from the U.S. elections and the Consumer Price Index, there might be a substantial price correction. Traders suggest a significant potential for upward movement in the short term, despite the recent drop in Bitcoin's price below $60,000.
Repeated instances of Bitcoin not surpassing higher resistance levels have created a "double-top price pattern" which could potentially cause a significant drop to $50,000, says a cryptocurrency analyst. Markus Thielen, the head of 10x Research, made these observations in a research note on June 24. He believes Bitcoin (BTC) is seemingly caught in a double-top pattern technically, currently probing its support level. This kind of pattern emerges when the price touches two similar highs with a minor slump in the middle, the support remains above a common line named the "neckline." This pattern usually plays out when the price dips below the neckline, potentially decreasing an equivalent value to the distance between the highs and the neckline.
He noted that Bitcoin could transition from the prevailing range trading (60,000-70,000) to a topping formation, which may result in a dramatic decrease. The 10x Research chart evidences this pattern unless further data invalidates it. This pattern might conceivably trigger a fall to $50,000—or even $45,000, added Thielen, he additionally remarked that traders have repeatedly seen range trading as a complex stage marked by numerous misleading breakouts over the last quarter. He warned that these topping formations have historically exposed retail investors to risk, with several alternative coins undergoing major losses.
Regardless of the potentially beneficial consequences of the upcoming U.S. elections and the Consumer Price Index (CPI) towards the end of the year, a significant price correction may be on the horizon.
Prominent cryptocurrency traders are theorizing about Bitcoin's trajectory following the halving event on April 20. The event resulted in a 50% reduction in Bitcoin miner block rewards from 6.25 BTC to 3.125 BTC. According to Crypto trader Jelle, Bitcoin's price actions are closely aligning with the trajectory seen post the 2016 halving cycle, experiencing fluctuations around similar historical highs. In a post on June 24, Jelle claimed that constant fear, uncertainty, and doubt (FUD) are being dumped at current prices, which he believes are part of "shakeout effects".
Crypto trader Rekt Capital suggests a strong potential for further upward movement in the short term. His June 24 post indicates that the market is nearly 40% into the "bull market" phase. This asserts that the recent drop of the BTC price under $60,000 presents buyers an opportunity to accumulate more during the dips before Bitcoin enters a "parabolic uptrend." As always, please ensure to conduct thorough research before making any investment decisions since all trading and investment activities involve risk.
Published At
6/25/2024 1:15:00 AM
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