In a recent Analysis of Bitcoin’s price, Rekt Capital, a seasoned crypto analyst, discussed the potential formation of a double top pattern on the weekly chart. This pattern indicates a potential for volatility, with both bullish and bearish narratives emerging. Rekt Capital emphasized the significance of the double top formation, noting that it is still intact. He also highlighted the presence of a bearish divergence on the weekly chart, suggesting additional bearish confluence. However, Bitcoin would need to drop further to complete the potential double top.
One intriguing aspect of this analysis is the current state of Bitcoin’s volume. Rekt Capital observed that the recent peaks in volume coincided with descending RSI, which suggests underlying Market weakness. This insight is supported by the subsequent decline in volume after the local top at around $31,000.
To confirm the double top pattern, Rekt Capital emphasized the need for an “M” shaped formation. He explained that an “M” shape is essentially a double top, with one top at $30,800 and another at $31,300. Losing the pivotal support level at $26,000 could lead to further downward movement. However, if the pattern follows symmetrical behavior, there could be a three-month second part of the “M” that prompts further downside and bleeding into the 90-day mark.
Despite the bearish outlook, there are some positive possibilities. If Bitcoin retraces to $24,000, it could retest the neckline of an inverse head and shoulders pattern, which could enable further upside. Furthermore, there is another scenario for the invalidation of the double top. Bitcoin has formed an ascending trendline from its low in early January. As long as Bitcoin can hold this trendline on a weekly basis and bounce up from around $28,200, the double top pattern would be invalidated, and the uptrend on higher time frames could continue.
In conclusion, the analysis of Bitcoin’s price suggests the presence of a potential double top formation on the weekly chart. The double top pattern indicates impending volatility, with both bullish and bearish narratives emerging. The current state of Bitcoin’s volume and the presence of a bearish divergence suggest underlying market weakness. However, there are possibilities for further upside if certain levels are held or retraced. It remains to be seen how Bitcoin’s price will unfold in the coming weeks..
#Bitcoin #Faces #Weekly #Double #Top #Happen
One intriguing aspect of this analysis is the current state of Bitcoin’s volume. Rekt Capital observed that the recent peaks in volume coincided with descending RSI, which suggests underlying Market weakness. This insight is supported by the subsequent decline in volume after the local top at around $31,000.
To confirm the double top pattern, Rekt Capital emphasized the need for an “M” shaped formation. He explained that an “M” shape is essentially a double top, with one top at $30,800 and another at $31,300. Losing the pivotal support level at $26,000 could lead to further downward movement. However, if the pattern follows symmetrical behavior, there could be a three-month second part of the “M” that prompts further downside and bleeding into the 90-day mark.
Despite the bearish outlook, there are some positive possibilities. If Bitcoin retraces to $24,000, it could retest the neckline of an inverse head and shoulders pattern, which could enable further upside. Furthermore, there is another scenario for the invalidation of the double top. Bitcoin has formed an ascending trendline from its low in early January. As long as Bitcoin can hold this trendline on a weekly basis and bounce up from around $28,200, the double top pattern would be invalidated, and the uptrend on higher time frames could continue.
In conclusion, the analysis of Bitcoin’s price suggests the presence of a potential double top formation on the weekly chart. The double top pattern indicates impending volatility, with both bullish and bearish narratives emerging. The current state of Bitcoin’s volume and the presence of a bearish divergence suggest underlying market weakness. However, there are possibilities for further upside if certain levels are held or retraced. It remains to be seen how Bitcoin’s price will unfold in the coming weeks..
#Bitcoin #Faces #Weekly #Double #Top #Happen
