Bitcoin’s Price Rally Faces Key Resistance Amid Bearish Double Top Pattern
Bitcoin’s (BTC) recent recovery appears to be losing momentum as a bearish double top pattern emerges on shorter timeframes, signaling potential downside risks.
BTC reached a high of approximately $87,400 last week before pulling back to around $84,000 on Friday. The price then rebounded above $87,000 but failed to sustain upward momentum, forming two peaks at a similar level separated by a decline. This setup aligns with the classic double top formation, a pattern often associated with trend reversals.
A crucial confirmation for this bearish structure would be a decisive drop below the “neckline”—the key support zone between the peaks—estimated at around $86,000. If BTC breaks below this level, it could pave the way for a decline toward $75,000 or lower in the short term. Despite this, the broader trend on higher timeframes suggests Bitcoin remains within an overall ascending range.
Market participants initially reacted positively to the U.S. Federal Reserve’s dovish stance on inflation, along with easing concerns over upcoming U.S. tariffs, which helped sustain Bitcoin’s recent gains. However, the lack of a strong correlation between BTC and altcoins suggests that the current price action may not have broad market support, raising the risk of a potential “fakeout” rally.
If Bitcoin’s bearish scenario plays out, it could have a ripple effect on the wider crypto market. Dogecoin (DOGE), which is highly sensitive to speculative trading and sentiment shifts, may see amplified losses. XRP’s momentum could also weaken, especially given its susceptibility to market sentiment and regulatory developments.
Solana (SOL) could be particularly vulnerable due to recent volatility and technical signals. The asset is nearing a potential “death cross” in mid-April, where the 50-day moving average crosses below the 200-day—a historically bearish indicator that has preceded deeper price declines.
For now, Bitcoin remains in a pivotal range. A weekly close below $84,000 could confirm the double top breakdown and reinforce bearish pressure, while a move above $87,500 might negate the pattern and reignite bullish momentum.
