Bitcoin Price Analysis: BTC/USD Creating Double Top?
Bitcoin price climbed higher once again vs the US Dollar, and created a new minor high of $464.69. However, there are chances of BTC/USD to create a double top pattern, which can take it down in the short term.
Yesterday, I highlighted a bullish trend line on the hourly chart of the BTC to USD (data feed via Bitstamp), which acted as a support area in taking the price higher.
Bitcoin price to move down?
Bitcoin price recently found support near the 100 hourly simple moving average, and moved higher to create a new weekly high of $464.69. However, the upside was limited, as sellers defended gains and pushed the price down.
Since the failure was just around the last swing high, there is a chance that BTC/USD is creating a double top pattern around $464, as highlighted in the chart attached.
If the pattern is true, then the price may move down, and test the highlighted bullish trend line or even test the 61.8% Fib retracement level of the last leg from the $439 low to $463 high.
However, an initial support on the downside is near the 100 hourly SMA, which is sitting near the 38.2% Fib retracement level of the last leg from the $439 low to $463 high.
I would not recommend any sell trade, as there are many support levels on the downside, but the pattern seems certain.
So, I would recommend to wait and watch until there is a major move either downside or above the recent swing high of $464.69.
If there is a break above the double top resistance area, then a move towards the $470 level is possible in the short term. The market sentiment looks bearish as of writing this article.
Chart Source – TradingView.com and data feed by Bitstamp