- With $93,960 serving as a crucial support, Bitcoin’s double top indicates a bearish reversal; shattering it might hasten losses.
- A potential drop to $80K aligns with the CME gap, a historically significant level where price corrections often occur.
- A daily close below support may trigger further selling, while a bounce could indicate strong buyer interest.
The price movement of Bitcoin is displaying a red flag. The top cryptocurrency is developing a double-top pattern on the CME Futures, according to CryptoBullet1. This bearish formation signals a potential price reversal. Currently, Bitcoin trades near its neckline at $93,960 after dropping 3.69%. If it breaks below this level, further downside is likely.
Double Top Formation Raises Alarms
A double-top pattern occurs when an asset reaches a high price twice but fails to break higher. This setup often signals a reversal. In Bitcoin’s case, strong selling pressure emerged near resistance, preventing further upside. The neckline at $93,960 serves as a key support. If Bitcoin closes below it on the daily chart, the decline could accelerate.
Additionally, historical trends show that Bitcoin tends to fill CME gaps. These gaps form when the market moves while futures trading is closed. The current gap is around $80,000, making it a possible downside target.
Market Momentum and Critical Levels
Bitcoin experienced strong bullish momentum before forming this double top. However, rejection at resistance triggered selling pressure. If Bitcoin fails to hold support, bears could push prices lower. The measured move of the pattern suggests a drop toward $80,000.
Moreover, the CME gap aligns with this level. Traders often watch these gaps closely as they historically tend to fill over time. If Bitcoin continues downward, the price could find support around this area.
Key Indicators to Watch
Bitcoin’s candlestick patterns show increasing selling pressure. If the price confirms a breakdown, market participants may expect further declines. The neckline remains at a pivotal level. A daily close below it could trigger a sell-off. However, if Bitcoin finds support at the neckline, it could bounce back. A strong recovery would indicate buyers stepping in. Still, the risk of a breakdown remains high.
