Is that a double top I’m seeing on the daily time frame of bitcoin?
Or is BTC/USD still about to bounce off support and keeping moving sideways in its long-term range?
Better keep this potential neckline breakdown on your radar!
Bitcoin (BTC/USD) Daily Chart by TradingView
It hasn’t been the best of weeks for bitcoin bulls, as the recent crypto heist in Bybit and the record outflows in bitcoin ETFs have sparked major losses.
BTC/USD has formed a double top pattern on its daily time frame and appears to be breaking below the neckline support around $90K.
Is it in for more declines from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Price has closed below S1, which lined up with the neckline support zone, suggesting that a downtrend of the same height as the reversal formation could follow. In this case, stay on the lookout for further dips to the next bearish targets at S2 ($80,119) near the 200 SMA then S3 ($71,073).
Just be careful since the 100 SMA is still above the 200 SMA on this time frame, and the gap between the moving averages is widening to reflect strengthening upside pressure. Keep your eyes peeled for a move back above S1 that could allow bitcoin to recover to the latest highs near $108K or at least until the pivot point level ($100,311).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.
