Bitcoin Forms Double Top Pattern On 4-Hour Chart, Analyst Reveals Targets

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As a researcher with experience in cryptocurrency analysis, I have closely followed the recent price movements of Bitcoin and have taken note of Finn Oakes’ latest analysis on the TradingView website. The formation of a double top pattern on the 4-hour chart is concerning, as it could signal a continuation of the downtrend that began last week.

The Bitcoin rebound hasn’t lived up to anticipations, falling short of reaching $60,000 despite regaining bullish energy. Consequently, pessimistic views regarding a potential bear market reversal have gained traction among analysts, who feel that the first cryptocurrency may lack the power to maintain its current upward trend. Among these skeptics is Finn Oakes, who forecasts a slide back towards $53,000.

Bitcoin Forms Double Top Pattern

As a researcher studying cryptocurrency trends, I’ve come across an intriguing analysis on the TradingView website by crypto expert Finn Oakes. According to his findings, the Bitcoin price has recently formed a double top pattern. This development unfolded when Bitcoin surpassed the $59,000 mark on two separate occasions. Regrettably, despite these upward movements, the price failed to sustain its advance above this significant resistance level on both attempts.

On the 4-hour chart, a double top pattern emerges, indicating a potential reversal in price direction. This bearish formation follows the initiation of a downtrend the previous week. If this pattern holds true, bulls will face an uphill battle to regain control.

As a crypto investor, I’ve noticed that the market has formed a double top at around $59,000. This level has proven to be a significant resistance point, making it challenging for the price to continue rising without first overcoming this hurdle. In other words, if we want to see a genuine uptrend, the price must convincingly surpass the $59,000 mark before we can consider it a successful breakthrough.

Instead of acting as a barrier at $56,000, this level now functions as a support for Bitcoin’s price. This setup presents bulls and bears with a close range of $3,000 to compete within, potentially driving the price up or down. If the battle between the two groups remains evenly matched, the price may continue moving sideways.

Target For The Decline

Based on the appearance of a double top formation in the 4-hour chart for Bitcoin, the cryptocurrency analyst anticipates another price decrease. In the event that Bitcoin’s price falls below the $56,000 support level, this analyst predicts a declining trend towards $53,000.

As a researcher analyzing the chart, I must admit that if the downward trend continues unchecked, the price may dip below the $53,000 mark and head towards $52,000. However, this is a pessimistic outlook as opposed to a more likely target for the market.

As an analyst, I have observed an uptick in trading volume during the recent downtrend. This observation suggests that there is a significant amount of sellers in the market, which could be intensifying the price decline. In simpler terms, the increased trading activity is a clear signal of substantial selling pressure, further strengthening the current trend towards lower prices.

Currently, Bitcoin is having a hard time maintaining its value above the $58,000 mark. Nevertheless, the cryptocurrency has managed to register a daily increase of 1.08%, based on information provided by Coinmarketcap.

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2024-07-11 07:16