Bitcoin’s repeated inability to surpass higher resistance levels has led to the development of a “double-top price pattern,” which could potentially precipitate a sharper decline to $50,000, as observed by a cryptocurrency analyst.
Markus Thielen, founder of 10x Research, elaborated in an analyst note on June 24 that Bitcoin (BTC) seems to be adhering to a double-top pattern technically and is currently testing its support level.
A double-top pattern manifests when the price hits two similar peaks with a slight dip between them, sustaining support above a common line called the “neckline.” This pattern usually resolves when the price falls below the neckline, potentially declining by an amount equivalent to the distance between the peaks and the neckline.
Bitcoin price chart. Source: 10x Research
“This chart formation should be our base case unless it becomes invalidated. This formation could easily see a drop to $50,000—if not $45,000,” Thielen noted, adding, “As we’ve seen over the past three months, range trading is a complex phase, often marked by several false breakouts.”
Thielen further remarked that despite the potential positive influences of the U.S. elections and the Consumer Price Index (CPI) later this year, the price could still undergo a “steeper correction.”
Prominent crypto traders are speculating about Bitcoin’s price following the halving event on April 20. This event halved Bitcoin miner block rewards from 6.25 BTC to 3.125 BTC.
Crypto trader Jelle mentioned that Bitcoin’s price action is still unfolding “similarly” to the 2016 halving cycle and is “chopping around the previous cycle highs.”
“More and more FUD is being offloaded at current prices,” Jelle declared in a June 24 post on X, adding that it is part of “shakeout effects.”
Crypto trader Rekt Capital believes there is significant potential for further upward movement in the short term. In a June 24 post, he said the market is roughly 40% through the “bull market” phase.
Source: Rekt Capital
This suggests that the recent drop in BTC price below $60,000 provides buyers with an opportunity to buy more during dips before Bitcoin enters a “parabolic uptrend.”
This article does not offer investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making a decision.