Double-Top Pattern and Potential Decline
Several Bitcoin analysts predict a dip in BTC prices below $50,000, citing technical analysis patterns. Markus Thielen, founder of 10x Research, noted in a June 24 analysis that Bitcoin is exhibiting a “double-top price pattern,” which could lead to a significant decline. This pattern, characterized by two similar peaks with a slight dip in between, suggests that Bitcoin might break below its support level, leading to further drops.
Technical Analysis and Market Patterns
Thielen explained that the double-top pattern typically resolves when the price falls below the “neckline,” potentially dropping by the distance between the peaks and the neckline. He stated, “Bitcoin could shift from its current range trading ($60,000-$70,000) into a topping formation, potentially leading to a steeper decline.” He suggested that Bitcoin might fall to $50,000 or even $45,000 unless the current chart formation is invalidated. Thielen also warned that such patterns often leave retail investors vulnerable, as many altcoins experience significant drops during these phases.
Influences on Bitcoin’s Price
Despite potential positive influences from upcoming U.S. elections and the Consumer Price Index (CPI) later this year, Thielen cautioned that Bitcoin’s price might still face a “steeper correction.” The recent halving event on April 20, which reduced Bitcoin miner block rewards by 50%, has also fueled speculation about future price movements.
Market Sentiment and Predictions
Crypto trader Jelle observed that Bitcoin’s price action is following a pattern similar to the post-2016 halving cycle, currently “chopping around the previous cycle highs.” Jelle suggested that the current price fluctuations might be part of “shakeout effects,” indicating that either the market has bottomed out or is close to it.
Rekt Capital, another prominent crypto trader, expressed optimism about Bitcoin’s short-term potential. In a June 24 post, he stated that the market is approximately 40% through the “bull market” phase, suggesting that the recent price drop below $60,000 offers a buying opportunity before Bitcoin enters a “parabolic uptrend.”
