Market

“Double top” pattern could push Bitcoin to $ 23,500

Peter Brandt, an experienced trader, known for suspect Exactly crypto market high in December 2017, suggesting that Bitcoin could form a “double top” pattern after falling more than 30% from its all-time high (ATH) of $ 69,000.

Brandt recall Bitcoin’s inability to extend the uptrend past the previous ATH, close to $ 65,000 after the second attempt. Meanwhile, he illustrated what is known as neckline support near $ 30,000 while warning of further decline below this key level.

Weekly BTC / USD Frame Price Chart with Top Pattern double | Source: TradingView

Is Bitcoin Price Likely To Fall 50%?

Specifically, traditional chartists see the formation of two consecutive tops, each leading to a strong retracement, as a sign of a bearish reversal. The downside target in the double top scenario is roughly the same depth as the height of the pattern formation.

But the bearish double top target is a little unrealistic here, as confirmation of the pattern shows Bitcoin price is falling nearly $ 35,000. That said, there is a risk of falling below $ 0, a very unlikely scenario.

However, if the price falls below the $ 30,000 neckline, Bitcoin’s ultimate downside target could be the 200-week exponential moving average (200-week EMA; orange wave in the graph below), which is currently about 50% below its current price which is nearly $ 23,500.

BTC / USD Daily Frame Price Chart with 200 Week EMA Support | Source: TradingView

The 200-week EMA is crucial in identifying bear market lows, as shown by the up arrows in the graph above. However, Brandt recalls:

“A chart pattern is not a chart pattern until it is completed and confirmed. Up until that point I wasn’t interested in that. “

Another sale?

Ignoring the prospect of a possible price drop, Bitpanda product manager Lukas Enzersdorfer-Konrad claims that Bitcoin’s price drop from $ 69,000 to $ 42,000 is similar to the drop in May 2021 after a new ATH.

“Similar to the recent decline, overused positions have increased volatility and destroyed most long positions,” said Enzersdorfer-Konrad with a view to the 2.5-inch liquidation in just a few hours on the 4th day correction for most liquid crypto Assets.

“The Bitcoin market is taking some time to recover in these situations and the daily chart is still volatile but still bullish on the higher timeframe,” added Konrad.

From a bullish technical point of view, independent market analyst “Wolf” says Bitcoin is oversold based on the Relative Strength Index (RSI) on the daily timeframe chart.

BTC / USD daily price chart with RSI bounce | Source: TradingView

Wolf predicts Bitcoin will test $ 51,780 as the next resistance with an expanded upside target near $ 60,000.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

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.

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

Dogecoin Price Gets $5 Prediction, Shiba Inu To Rally 1,100%, And ETFSwap (ETFS) To Jump 135x

Here are the latest predictions for Dogecoin, Shiba Inu, and ETFswap.

1 hour ago

AVAX Hits $1B in DeFi, Cardano Expected to Surge—BlockDAG Leads with $110M Presale & 100% Bonus!

Discover BlockDAG's 100% bonus and $110M presale surge that’s sparking interest among crypto enthusiasts. Also,…

1 hour ago

Crypto Institutional Investors Move To ETFSwap (ETFS) Amid $500 Million Liquidity Injection Expectations

Discover why crypto investors are moving to ETFSwap (ETFS) as $500 million liquidity injection is…

4 hours ago

Buyers Rush to Maximise Gains with BlockDAG’s 100% Bonus Offer; Plus, ETH Holds Strong as Solana Challenges Rivals

Learn about BlockDAG's $110M presale achievement and the whopping 100% bonus offer, alongside Ethereum's growth…

6 hours ago

Thai Police Corruption Case Involving Officers and Extortion

Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…

9 hours ago

SafePal Telegram Wallet Launches with Swiss Bank Accounts and CeDeFi

SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…

10 hours ago

This website uses cookies.