What to know:

• Bitcoin (BTC) has reached notable peaks around $108,000, denoting a possible double top bearish reversal pattern.
• A breach below the double top neckline could signal a shift in trends.

Analysis Overview

Bitcoin might see a decrease to $75,000 if it develops a bearish reversal pattern known as a ‘double top’.

A double top occurs when there are two peaks at roughly the same price, with a line drawn through the lowest point between them. Failure to exceed the prior peak followed by a decline indicates a reduction in upward momentum.

Therefore, a breakdown of the neckline trendline confirms this bearish transition.

At the time of this analysis, BTC has retreated to around $100,000, unable to hold its ground above last week’s December high. Essentially, it appears BTC has formed a double top, with the neckline support located near $91,300.

A closing price below this neckline would confirm a bearish reversal, potentially leading to a drop to $75,000, a figure derived by subtracting the distance between the twin peaks and the neckline level from that neckline level.

BTC’s double top BTC’s double top. (TradingView/CoinDesk)