Bitcoin (BTC)’s failure to overcome overhead resistance has led to the formation of a “double top,” which could potentially lead to a “stronger decline” to $50,000, according to one currency analyst electronic.
10x Research founder Markus Thielen explained in an analyst note on June 24 that Bitcoin (BTC) appears to be following a double-top pattern and is currently testing its support level.
The double top pattern is a price reversal pattern, often appearing at the end of an uptrend, providing a reversal signal from bullish to bearish. This pattern consists of two peaks of equal height and a “neckline” passing through the bottom created by the two peaks. This pattern is completed when the price breaks below the neckline, potentially causing a decline equal to the distance between the peaks and the neckline.
“Bitcoin could move from its current trading range ($60,000-$70,000) to form a top, potentially leading to a sharper decline.”
BTC price chart | Source: 10x Research
“This should be our baseline scenario unless it is disabled. This formation could easily see a decline to $50,000 – if not $45,000,” Thielen said, adding, “As we have observed over the past three months, range trading is a phase complex, often marked by many false breakouts“.
“Historically, peak patterns have hurt individual investors, with many altcoins experiencing significant price declines.”
Thielen added that despite the potential positive impact of the US election and the Consumer Price Index (CPI) later this year, prices could still experience a “stronger correction”.
Other prominent analysts are currently speculating on Bitcoin price following the halving event on April 20. The event cut Bitcoin’s block reward by 50%, from 6.25 BTC to 3,125 BTC.
Analyst Jelle said Bitcoin’s price action has remained “similar” following the 2016 halving cycle and is “trading around the highs of the previous cycle.”
“More and more fuds are being released at current prices,” Jelle declare in a June 24 post on X, adding that this is part of the “shake-up effect.”
“Either it’s over, or we’re close to the bottom.”
Analyst Rekt Capital believes there is significant potential for further upside in the short term. In a June 24 post, he said the market was about 40% through its current “bull cycle.”
BTC/USDT Monthly Chart | Source: Rekt Capital
That said, BTC’s latest drop below $60,000 gives buyers a chance to accumulate more before Bitcoin enters a “parabolic uptrend.”
You can see BTC price here.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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According to Cointelegraph
