Bitcoin Double-Top Pattern Could Lead to Steeper Decline to $50,000, Analyst Warns
Bitcoin’s price could be heading for a steep decline to $50,000, according to a crypto analyst who has identified a “double-top price pattern” forming in the market. Markus Thielen, founder of 10x Research, explained that Bitcoin is currently testing its support level after failing to break above higher resistance levels.
A double top pattern occurs when the price reaches two similar peaks with a slight dip in between, maintaining support above a common line known as the “neckline.” If the price breaks below this neckline, it could potentially lead to a significant drop in value.
Thielen warned that Bitcoin could shift from its current range trading of $60,000 to $70,000 into a topping formation, which may result in a steeper decline. He emphasized that this chart formation should be considered the base case unless it becomes invalidated, with the potential for a drop to $50,000 or even $45,000.
Despite the upcoming U.S. elections and the Consumer Price Index (CPI) later this year, Thielen believes that the price of Bitcoin could still experience a “steeper correction.” Prominent crypto traders are also speculating on Bitcoin’s price action following the recent halving event, with some suggesting that the market is approximately 40% through the “bull market” phase.
While some traders see potential for further upward movement in the short term, others are cautious about the possibility of a significant drop in price. As the market continues to fluctuate, investors are advised to conduct their own research and exercise caution when making investment decisions.
