Is Bitcoin Forming a Double Top? Analyst Who Called Crypto Crash in May Looks at State of BTC

Is Bitcoin Forming a Double Top? Analyst Who Called Crypto Crash in May Looks at State of BTC


The trader who accurately called Bitcoin’s top just under $65,000 says BTC could be displaying a bearish technical pattern.

The pseudonymous trader known as Dave the Wave tells his 79,700 Twitter followers that Bitcoin’s chart indicates BTC could be forming a “double top.” If the trader is correct, it could be a bearish indicator, suggesting that bulls lack the strength to push the price of the crypto asset to greater heights.

 

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Explains Dave the Wave,

“Double top anyone? It wouldn’t surprise me as this market has a knack of making each correction more difficult…”

Source: Dave the Wave/Twitter

According to Dave the Wave’s analysis, the double top pattern may be confirmed if Bitcoin fails to rally above $50,000.

Bitcoin is trading at $49,132.76 at time of writing, up more than 13% in the past seven days, according to CoinGecko.

While Dave the Wave says he expects resistance, he notes that his outlook could change if BTC’s price continues to rise.

“Shorter-term bullish move challenging the medium-term corrective trend. Can price make a higher local high? Price making a run to the top of the channel as drawn in the medium term. *IF* it can cross convincingly and invalidate this trend, then a good chance of price not going the one fib level lower. *Let’s see*. For the moment, still expecting price to meet resistance.”

Source: Dave the Wave/Twitter

Based on Dave the Wave’s chart, BTC currently faces a diagonal resistance and a horizontal resistance at around $50,000. If BTC can crush those resistances, Dave the Wave says his bearish scenario that could send Bitcoin below $30,000 would be invalidated.

The trader also shares a chart indicating BTC tends to crash seven months after each peak.

“Is it different this time? If there were one chart making $100,000 this year improbable, this would be it.”

Source: Dave the Wave/Twitter

The chart shows that Bitcoin continued to correct seven months after hitting the 2013 and 2017 bull market tops. The largest crypto asset by market cap hit its all-time high of $64,804.72 on April 14th, nearly six months ago. Dave the Wave suggests that history may be on the verge of repeating itself.

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