🔍 Bitcoin's Double Top Appears on Chart: BTC May Drop to $50,000
Bitcoin (BTC) has formed a double top pattern, signaling a potential bearish trend reversal ahead of important data releases that could impact the Fed's interest rate path.
📉 Recent Bitcoin Price:
- After surging to nearly $70,000, approaching its all-time high from March, it has now dropped to $60,856 at the time of writing.
- Main causes: Faster selling by miners, investors taking profits near the all-time high, and outflows from U.S.-listed spot ETFs.
📊 Double Top Pattern:
- The price action has formed a double top, a bearish technical analysis pattern.
- The second peak indicates the exhaustion of the uptrend.
- Breaking the low between the two peaks confirms the bearish trend reversal.
🔍 Technical Analysis:
- Markus Thielen, founder of 10x Research, stated: "Technically, Bitcoin appears to be following a double top formation. This pattern could easily see a drop to $50,000—if not $45,000."
📉 Inflation and Interest Rate Data:
- The Personal Consumption Expenditures (PCE) price index is expected to show the slowest monthly increase in core figures in over three years.
- This could bolster the likelihood of the Fed continuing to cut interest rates from September, potentially setting a floor for risk assets, including Bitcoin.
🗣️ Expert Opinions:
- Greg Magadini, head of derivatives at Amberdata, noted: "Strong economic data recently has driven bond yields higher and precious metals lower. This continues to hinder digital hard assets like cryptocurrencies."
- Magadini added: "This week we have several Fed Governors speaking, GDP data, and most importantly, PCE on Friday."
Economists surveyed by Bloomberg expect no changes in the PCE price index and a modest 0.1% increase in the core PCE, leading to a 2.6% annual increase in both headline and core figures.
