{"id":28379,"date":"2023-08-17T20:52:38","date_gmt":"2023-08-18T00:52:38","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=28379"},"modified":"2023-08-17T20:52:38","modified_gmt":"2023-08-18T00:52:38","slug":"bitcoin-faces-a-weekly-double-top-this-needs-to-happen","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/08\/17\/bitcoin-faces-a-weekly-double-top-this-needs-to-happen\/","title":{"rendered":"Bitcoin Faces A Weekly Double Top; This Needs To Happen"},"content":{"rendered":"

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<\/a> paints a picture of impending volatility, with both bullish and bearish narratives emerging from this often foreboding pattern.<\/p>\n

\u201cThe BTC Double Top still remains intact,\u201d tweeted Rekt Capital, emphasizing the technical structure\u2019s significance. He continues, \u201cWeekly 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).\u201d\u00a0However, BTC would need to drop an additional -9% to -13% from current prices to complete its potential double top.<\/p>\n

But what makes this analysis particularly intriguing is the current state of Bitcoin\u2019s volume. Rekt Capital further observes, \u201cWhat\u2019s interesting about the volume behind BTC\u2019s price action is that the two recent peaks formed on inclining volume while the RSI formed lower highs.\u201d 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.<\/p>\n

Diving deeper in his video analysis, Rekt Capital highlighted the need for a distinct \u201cM\u201d-shaped formation, a hallmark of the double top pattern. \u201cFor Bitcoin to form a double top here, we have to see an \u2018M\u2019-shaped formation take place. When we see a M form, that\u2019s essentially a double top. One top here [at $30,800] and one top here [at $31,300].\u201d<\/p>\n

Losing pivotal support levels could invite substantial downward movement. \u201cLosing this [neckline] level at $26,000 as support would enable further downside,\u201d warns the analyst. However, for traders and investors hoping for symmetrical behavior, Rekt Capital speculates, \u201cAnd if we see symmetry here, a three month second part of this M could form so that\u2019s going to prompt further downside and just slow bleeding into that 90 day-mark which would be around next month.\u201d<\/p>\n

But not all is bleak. Should Bitcoin trace back to $24,000, a retracement would \u201csee us retest the neckline of this inverse head & shoulders that we saw break out.\u201d Rekt Capital adds, \u201cSo a retest of this level as a new support should actually enable further upside.\u201d<\/p>\n

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.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

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<\/a> paints a picture of impending volatility, with both bullish and bearish narratives emerging from this often foreboding pattern.<\/p>\n

\u201cThe BTC Double Top still remains intact,\u201d tweeted Rekt Capital, emphasizing the technical structure\u2019s significance. He continues, \u201cWeekly 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).\u201d\u00a0However, BTC would need to drop an additional -9% to -13% from current prices to complete its potential double top.<\/p>\n

But what makes this analysis particularly intriguing is the current state of Bitcoin\u2019s volume. Rekt Capital further observes, \u201cWhat\u2019s interesting about the volume behind BTC\u2019s price action is that the two recent peaks formed on inclining volume while the RSI formed lower highs.\u201d 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.<\/p>\n

Diving deeper in his video analysis, Rekt Capital highlighted the need for a distinct \u201cM\u201d-shaped formation, a hallmark of the double top pattern. \u201cFor Bitcoin to form a double top here, we have to see an \u2018M\u2019-shaped formation take place. When we see a M form, that\u2019s essentially a double top. One top here [at $30,800] and one top here [at $31,300].\u201d<\/p>\n

Losing pivotal support levels could invite substantial downward movement. \u201cLosing this [neckline] level at $26,000 as support would enable further downside,\u201d warns the analyst. However, for traders and investors hoping for symmetrical behavior, Rekt Capital speculates, \u201cAnd if we see symmetry here, a three month second part of this M could form so that\u2019s going to prompt further downside and just slow bleeding into that 90 day-mark which would be around next month.\u201d<\/p>\n

But not all is bleak. Should Bitcoin trace back to $24,000, a retracement would \u201csee us retest the neckline of this inverse head & shoulders that we saw break out.\u201d Rekt Capital adds, \u201cSo a retest of this level as a new support should actually enable further upside.\u201d<\/p>\n

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.<\/p>\n

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