Bitcoin has already crossed the milestone of $70,000, but looking at trading charts warns of BTC run reaching its end.
Bitcoin Price has crossed $70,000 and is trying to climb even higher, however, BTC might see the end of the current rally.
The Bitcoin price is finding hurdles close to $71,900 price. If Bitcoin price cannot break through this resistance then it may undergo the declining phase.
This declining phase of BTC price develops due to the formation of a double-top pattern in the chart around the $71,900 mark.
Bitcoin Price Shows Double-Top Pattern
Double top pattern predicts potential trend reversal from bullish to bearish. This pattern forms when the price reaches a peak, falls, and then rises to the peak once more before beginning to decline.
BTC price chart showing a double top pattern signifies a huddle in further rise of price. Thus, the enormous rise of BTC price appears to decline and a downward trend may occur.
Bitcoin Price Heading for Downfall?
BTC’s price is reaching an overbought territory. According to the RSI (Relative Strength Index) as BTC’s price approaches an overbought level it might be due for a downfall soon.
Although BTC’s price recently went upwards, the trading volume did not increase that much. This indicates that the buying pressure is declining.
BTC has gained significant price appreciation for a long time as it continuously displayed bullish behavior. It will break the technical analysis pattern as indicated by RSI soon.
Traders need to outlook cautiously and they should be aware of a potentially dangerous pattern that is developing on BTC’s price chart.
Bitcoin price has been having a smooth ride at crypto market due to spot ETF announcement, international adoption in Australia, Thailand and in Argentina on account of El Salvador, and overall positive investor sentiment about BTC. Traders, however, need to apprach BTC wisely to protect their investments.
Crypto markets are volatile by nature, treading carefully would be wise for investors and traders alike considering the current BTC situation.
