Current Market Overview:
Bitcoin (BTC/USD) is currently trading around $85,963, showing a decline of -0.92% on the daily timeframe. The price action indicates the formation of a potential double top pattern, suggesting a possible trend reversal.
Key Technical Observations:
1. Double Top Formation (Bearish Reversal Pattern)
Top 1 & Top 2 indicate a classic double top pattern, signaling potential weakness in bullish momentum.
The price failed to break above resistance, confirming selling pressure at higher levels.
A confirmed breakdown from this pattern could lead to a significant decline towards key support levels.
2. Breakdown of Ascending Trendline
The chart shows an ascending trendline, which has now been broken.
This break signals a shift in market structure, favoring a potential bearish trend.
After breaking the trendline, BTC/USD may attempt a retest before continuing lower.
3. Support Levels & Take Profit (TP) Targets
TP1: $68,296 – This level acts as the first major support and potential take-profit zone for short sellers.
TP2: $49,433 – A stronger support zone aligning with a previous accumulation area. If BTC breaks below TP1, TP2 becomes the next key level to watch.
Potential Price Scenarios:
🔴 Bearish Scenario (Primary Outlook)
BTC/USD retests the broken trendline or recent highs before continuing downward.
Price drops towards TP1 ($68,296), where a temporary bounce may occur.
If the selling momentum continues, BTC could fall further towards TP2 ($49,433), a major historical support level.
🔵 Bullish Scenario (Less Likely Alternative)
If BTC holds above $85,000 and breaks above the double top resistance, the bullish trend may continue.
A strong push above $90,000 could invalidate the bearish outlook, leading to new all-time highs.
Trading Plan & Strategy:
✅ For Short Entries:
Look for a retest of the broken trendline or rejection at $90,000 resistance before entering.
Target TP1 ($68,296) as the first take-profit level.
If price continues dropping, hold for TP2 ($49,433).
❌ For Long Entries (Risky):
Only consider longs if BTC reclaims the $90,000+ level with strong volume.
Set stop-losses below $85,000 to manage risk.
Final Thoughts:
Bitcoin shows bearish signs with a double-top formation and a trendline breakdown. While a short-term bounce may occur, the overall outlook suggests a move towards $68,000 and potentially $49,000. Traders should wait for confirmation before entering trades. 📉🚨
Bitcoin (BTC/USD) is currently trading around $85,963, showing a decline of -0.92% on the daily timeframe. The price action indicates the formation of a potential double top pattern, suggesting a possible trend reversal.
Key Technical Observations:
1. Double Top Formation (Bearish Reversal Pattern)
Top 1 & Top 2 indicate a classic double top pattern, signaling potential weakness in bullish momentum.
The price failed to break above resistance, confirming selling pressure at higher levels.
A confirmed breakdown from this pattern could lead to a significant decline towards key support levels.
2. Breakdown of Ascending Trendline
The chart shows an ascending trendline, which has now been broken.
This break signals a shift in market structure, favoring a potential bearish trend.
After breaking the trendline, BTC/USD may attempt a retest before continuing lower.
3. Support Levels & Take Profit (TP) Targets
TP1: $68,296 – This level acts as the first major support and potential take-profit zone for short sellers.
TP2: $49,433 – A stronger support zone aligning with a previous accumulation area. If BTC breaks below TP1, TP2 becomes the next key level to watch.
Potential Price Scenarios:
🔴 Bearish Scenario (Primary Outlook)
BTC/USD retests the broken trendline or recent highs before continuing downward.
Price drops towards TP1 ($68,296), where a temporary bounce may occur.
If the selling momentum continues, BTC could fall further towards TP2 ($49,433), a major historical support level.
🔵 Bullish Scenario (Less Likely Alternative)
If BTC holds above $85,000 and breaks above the double top resistance, the bullish trend may continue.
A strong push above $90,000 could invalidate the bearish outlook, leading to new all-time highs.
Trading Plan & Strategy:
✅ For Short Entries:
Look for a retest of the broken trendline or rejection at $90,000 resistance before entering.
Target TP1 ($68,296) as the first take-profit level.
If price continues dropping, hold for TP2 ($49,433).
❌ For Long Entries (Risky):
Only consider longs if BTC reclaims the $90,000+ level with strong volume.
Set stop-losses below $85,000 to manage risk.
Final Thoughts:
Bitcoin shows bearish signs with a double-top formation and a trendline breakdown. While a short-term bounce may occur, the overall outlook suggests a move towards $68,000 and potentially $49,000. Traders should wait for confirmation before entering trades. 📉🚨
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.