Source: CoinDesk; Translated by: Tao Zhu, Jinse Finance
Summary
Bitcoin (BTC) price recovery has formed a bearish Double Top pattern at $87,000, increasing the risk of another decline.
If the support between the two peaks (called the neckline) is broken, the pattern will be confirmed, potentially leading to a short-term drop to $75,000 or lower.
Bitcoin's current price trend may lack broad market support, increasing the possibility of a "false breakout" rebound. A weekly close (Sunday UTC) below $84,000 will confirm the bearish scenario, while breaking $87,500 could invalidate it.
Bitcoin (BTC)'s recovery appears to have lost momentum, with a bearish Double Top reversal pattern emerging on the short-term price chart.
BTC reached a peak near $87,400 last week, with price falling to around $84,000 on Friday and rebounding above $87,000 before stalling again. These two prominent peaks are roughly at the same level with a trough in between, suggesting a typical Double Top formation. This bearish pattern usually signals the end of an uptrend.
The Double Top pattern typically requires confirmation by breaking the "neckline", the support between the two peaks, around $86,000.
If this occurs, BTC could drop to $75,000 or lower in the short term. However, long-term charts continue to indicate the asset remains in an upward range.
Traders responded positively to the Federal Reserve's dovish stance on inflation and cooling concerns about upcoming US tariffs, which supported the trend last week.
However, the lack of correlation between Altcoins and BTC's recent movement suggests the current price trend may lack broad market support, increasing the possibility of a "false breakout" rebound.
BTC's potential decline could spread to major tokens, undermining recent gains and hopes for a sustained rebound. Doge (DOGE), heavily influenced by market sentiment and speculative trading, could experience amplified losses if Bitcoin's bearish pattern takes effect, while XRP's momentum might weaken, especially considering its sensitivity to market sentiment and regulatory developments.
Solana could be particularly sensitive due to its recent volatility and technical indicators—it nearly formed a "death cross" (bearish signal of 50-day moving average crossing below 200-day moving average) in mid-April, which historically leads to larger losses.
Currently, Bitcoin hovers in a critical area. A weekly close below $84,000 might confirm the bearish Double Top scenario, while breaking $87,500 could invalidate it and potentially reignite bullish momentum.
