Bitcoin (BTC) is showing signs of forming a double top bearish reversal pattern, which could signal a price drop to $75,000.
A double top pattern occurs when two peaks are formed at roughly the same price level, with a trendline drawn through the low point between the peaks. If the price fails to surpass the previous peak and starts to decline, it indicates a weakening of the uptrend. When the price breaks below the trendline support (the neckline), it suggests a shift from a bullish to a bearish trend.
At the time of writing, Bitcoin is trading around $100,000, having struggled to maintain momentum above the December high. This suggests that Bitcoin may have formed a double top, with the neckline support positioned around $91,300.
If Bitcoin closes below this neckline level, it would confirm the bearish reversal, potentially setting the stage for a drop to $75,000. This price target is determined by the measured move method, where the difference between the two peaks and the neckline is subtracted from the neckline level.
