Bitcoin Faces A Weekly Double Top; This Needs To Happen

News BTC

In a recent analysis of the Bitcoin price, seasoned crypto analyst Rekt Capital discussed the looming presence of a potential double top formation on the weekly chart. The scenario paints a picture of impending volatility, with both bullish and bearish narratives emerging from this often foreboding pattern.

“The BTC Double Top still remains intact,” tweeted Rekt Capital, emphasizing the technical structure’s significance. He continues, “Weekly Bearish Divergence lends additional bearish confluence to this structure as well. More, the bear div is developing a new lower high (dotted green) relative to its primary downtrend (solid green).” However, BTC would need to drop an additional -9% to -13% from current prices to complete its potential double top.

How To Get Free Crypto  

Bitcoin weekly double top | Source: Twitter @rektcapital

But what makes this analysis particularly intriguing is the current state of Bitcoin’s volume. Rekt Capital further observes, “What’s interesting about the volume behind BTC’s price action is that the two recent peaks formed on inclining volume while the RSI formed lower highs.” For many, this simultaneous increase in volume with descending RSI hints at underlying market weakness, an insight further supported by the subsequent declining volume after the local top at approximately $31,000.

Diving deeper in his video analysis, Rekt Capital highlighted the need for a distinct “M”-shaped formation, a hallmark of the double top pattern. “For Bitcoin to form a double top here, we have to see an ‘M’-shaped formation take place. When we see a M form, that’s essentially a double top. One top here [at $30,800] and one top here [at $31,300].”

Losing pivotal support levels could invite substantial downward movement. “Losing this [neckline] level at $26,000 as support would enable further downside,” warns the analyst. However, for traders and investors hoping for symmetrical behavior, Rekt Capital speculates, “And if we see symmetry here, a three month second part of this M could form so that’s going to prompt further downside and just slow bleeding into that 90 day-mark which would be around next month.”

But not all is bleak. Should Bitcoin trace back to $24,000, a retracement would “see us retest the neckline of this inverse head & shoulders that we saw break out.” Rekt Capital adds, “So a retest of this level as a new support should actually enable further upside.”

Coinbase Banner  

Also, a look at the 1-week chart also shows that there is another scenario for the invalidation of the double top. Bitcoin has formed an ascending trendline from its low in early January. Provided BTC can hold this trendline on a weekly basis and bounce up from there (at around $28,200), an invalidation would take place. The symmetry of the M would be broken, the uptrend on the higher time frames could continue.

BTC’s trendline is still intact, 1-week chart | Source BTCUSD on

Featured image from iStock, chart from

Go to Source
Author: Jake Simmons

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.