đ WILL BTC FALL TO $50k DUE TO DOUBLE TOP PATTERN?đâ
Bitcoin has carved out a double-top pattern, a classic bearish signal, suggesting a potential downward correction. Key upcoming data could impact the Fed's interest rate decisions, influencing market trends.
đ„ Volatile Price Action:
This month has seen Bitcoin's price surge near $70,000, approaching its all-time high from March, only to retreat to $63,000. This decline contrasts with Nasdaq's upward movement and is attributed to faster miner selling, investor profit-taking, and outflows from U.S.-listed spot ETFs.
đ Double Top Formation:
The double-top pattern, characterized by two peaks with a valley in between, indicates uptrend exhaustion. Breaking below the valley's low point confirms a bearish trend. Markus Thielen from 10x Research noted, "Bitcoin follows a double top formation. This could see a drop to $50,000âif not $45,000."
đ Potential Bullish Factors:
While the U.S. election and CPI might boost Bitcoin later this year, a steeper correction is still possible. The Fed's preferred inflation gauge, the PCE price index, due this Friday, could offer relief by cementing the case for renewed Fed rate cuts from September.
đ Economic Data Impact:
Recent strong economic data has pushed bond yields higher and precious metals lower, hindering digital hard assets like crypto. Greg Magadini from Amberdata emphasized, "This week, multiple Fed Governors speak, GDP figures, and most importantly, the PCE on Friday could significantly influence the market."
đ Expected PCE Figures:
Economists anticipate no change in the PCE price index and a modest 0.1% increase in the core PCE, translating to 2.6% annual advances in both headline and core figures. The projected core increase, excluding food and energy, would be the smallest since March 2021.
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