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Bitcoin's recovery has not been as impactful as expected, failing to break the $60,000 mark even after a return of bullish momentum. Against this backdrop, expectations of a bearish reversal have become the norm as analysts do not believe the pioneer cryptocurrency has enough momentum to sustain the current momentum. One of the analysts who believes the price is headed for a downturn is Finn Oakes, who predicts a return to the $53,000 range.

Bitcoin forms a double top pattern

In the analysis published on the TradingView website, crypto analyst Finn Oakes explains that the Bitcoin price has now formed a double top. This happened after the Bitcoin price crossed the $59,000 mark twice and failed to overcome this level both times.

This double top pattern is seen on the 4-hour chart, where a reversal pattern is forming as a result. This double top is bearish for the price and could signal a continuation of the downtrend that started last week. In such a case, the bulls will face an uphill battle.

Analyzing the Double Top, the crypto analyst explains that $59,000 has now proven to be a strong resistance zone, meaning that before any price rally can take place, the price must successfully overcome this resistance before it is confirmed.

As opposed to the resistance level, $56,000 has now emerged as support for the Bitcoin price. This gives both bulls and bears a narrow $3,000 scope to fight for supremacy and push the price in either direction. Otherwise, the sideways movement could continue.

Target for the decline

Given the formation of the double top in the 4-hour chart, the crypto analyst expects a fresh price decline. For the first scenario, in which the Bitcoin price falls below the $56,000 support, the crypto analyst expects a downtrend to the $53,000 level.

However, this is not the end of the story if the downtrend is not stopped. In this case, the chart shows the price falling below the $53,000 mark and moving towards $52,000. However, this seems to be more of a worst-case scenario than an expected target.

In addition, the analyst believes that the increasing volume during the downtrend suggests that more selling is taking place in the background, which could contribute to the price decline. “Trading volume has increased during the last few down days, indicating strong selling pressure. This reinforces the current downtrend,” Oakes said.

At the time of writing, Bitcoin price is struggling to hold the $58,000 mark, however, it is still recording a 1.08% gain over the past day, according to data from Coinmarketcap.

Bitcoin price chart from Tradingview.com
BTC price falls after recovery | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

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