Bitcoin (BTC) could be forming a ‘double top’ pattern after falling more than 30% from its all-time high of $ 69,000suggests Peter Brandt, a veteran trader known for correctly calling the top cryptocurrency market in December 2017
The bubble has been popped. Bull market in $ BTC over for some time. For analog look at Gold chart from 2011 on wards pic.twitter.com/AUSiGH0eCg
– Peter Brandt (@PeterLBrandt) December 22, 2017
The bubble has burst. The bull market in $ BTC has already ended for some time. For an analog look at the gold chart from 2011 onwards
The CEO of Factor LLC remembered Bitcoin’s inability to extend its price rally above its previous all-time peak near $ 65,000 after a second attempt. Meanwhile, It illustrated an immediate support level for the price of BTC at a so-called neckline near $ 30,000 while warning of further declines below this key level.
Is a 50% Bitcoin Price Drop Realistic?
In detail, traditional chartists perceive the formation of two consecutive highs, each of which leads to a sharp price pullback to the downside, as a signal of a bearish reversal. The downside target in a double top scenario becomes approximately as deep as the height of the pattern formation.
But the double-top downside target is somewhat unrealistic here because confirmation of the pattern would suggest a nearly $ 35,000 decline in the price of Bitcoin. That is, the price of BTC would risk falling below $ 0 in a perfect world, a scenario that is highly unlikely.
Nonetheless, if the price breaks below the $ 30,000 neck, Bitcoin’s final downside target may turn out to be the 200-week exponential moving average (200-week EMA).; the orange wave in the chart below), currently around 50% below current price levels, near $ 23,500.
The 200-week EMA has been instrumental in predicting the floors in a bear market, as shown by the arrows pointing upward in the chart above. However, Brandt recalled:
“A chart pattern is NOT a chart pattern until it is completed and confirmed. Until then, I’m only interested in passing.”
Just another BTC price drop?
Ignoring potential bearish prospects, Bitpanda’s Chief Product Officer Lukas Enzersdorfer-Konrad claimed that Bitcoin’s price drop from $ 69,000 to $ 42,000 is similar to its May 2021 price drop, in which it plunged in more than 50%, just to cut all those losses and hit a new record later.
“Similar to the recent drop, overlevered positions increased volatility and erased most long positions,” Enzersdorfer-Konrad told Cointelegraph in an emailed statement, referring to the $ 2.5 billion settlement on December 4 in a matter of hours, prompting an intraday correction of around 20% in most crypto assets. liquids.
The analyst added:
“The Bitcoin market needs some time to recover in these situations, and intraday charts are still volatile, but remain bullish on the higher time frame.”
From a bullish technical point of view, a popular independent market analyst known by the pseudonym “Wolf” presented Bitcoin as an oversold asset based on its relative strength index (RSI) readings on a daily time frame chart.
Wolf anticipated that BTC price would test the $ 51,780 level as its next resistance level, with an extended bullish target of close to $ 60,000.
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