Bitcoin — Double Top, Reversal Incoming?
At least short-term, Bitcoin's chart is about to turn slightly bearish. However, this is perfectly aligned with yesterdays's decsribed scenario of a pullback before moving higher. Therefore, nothing we should be concerned about, yet. Here are the main observations:
- Double Top Formation: Bitcoin hit the $68,000 level twice and got rejected both times. This is typically a bearish sign as buyers lose strength, unable to push the price higher.
- Decreasing Volume: The volume trend (marked with a dotted line) is also declining, indicating weakening momentum. This further supports the bearish case since a strong rally requires rising volume.
In summary, the chart shows clear signs of a potential short-term pullback. If the price drops from here, it would confirm the double top. A break above $68,000, however, could invalidate this setup and push the price higher.
