Is that a double top forming on Bitcoin’s daily chart? Or could BTC/USD be gearing up for a rebound off support, maintaining its sideways trade within its long-term range? It’s wise to keep an eye on this potential neckline breakdown!
Bitcoin enthusiasts haven’t had the most favorable week. The recent cryptocurrency theft at Bybit and significant outflows from Bitcoin ETFs have triggered notable losses.
On the daily timeframe, BTC/USD has crafted a double top pattern, threatening to slip below the neckline support in the $90K region. Are we looking at the start of a downward spiral, or is there still hope for a rally?
Market movements are often shaped by fundamental factors, which means staying informed is crucial. If you’re not up to speed on Bitcoin or the U.S. dollar, now’s the time to dive into the economic calendar and catch up with the latest fundamental news!
The price has closed just below S1, which coincides with the neckline support area. This suggests a potential downtrend of the same height as the reversal pattern may unfold. Watch for further declines aiming at subsequent bearish targets, with S2 around $80,119 near the 200 SMA, and S3 closer to $71,073.
Caution is advised, though, since the 100 SMA continues to hover above the 200 SMA on this timeframe. The widening gap between the SMAs indicates possibly strengthening upward pressure. A move above S1 could signal a recovery for Bitcoin, pushing it back to recent highs near $108K or at least towards the pivot level around $100,311.
Regardless of your trading bias, remember to employ sound risk management strategies and stay alert for major catalysts that could sway market sentiment!
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