If Bitcoin (BTC) triggers a so-called “double top” bearish reversal pattern, it could drop to $75,000.
A double top consists of two consecutive peaks at approximately the same price, with a trendline drawn through the lows between these peaks. The failure to break out of the previous peak and subsequent decline indicates that the uptrend is losing momentum.
Therefore, horizontal trend support is said to support an eventual breakdown, i.e. a double top lead, that can confirm a trend change with a bullish pair bias.
BTC has retraced $100,000 at the time of writing and is not holding steady on last week’s December highs. In other words, BTC looks to have formed a double top, with neckline support around $91,300.
A UTC approach below the neckline level would confirm a bearish reversal pattern that could lead to a drop to $75,000. The target is calculated using the measured movement method, subtracting the gap between the twin peaks and the collar from the collar level.
