BTC Double Top Pattern Shows Signs of Weakness

Bitcoin has displayed a double-top chart pattern on the daily chart, a common sign of a bearish reversal. The market has experienced 43 consecutive days of down-close prices, indicating a loss of momentum on the daily chart.

Bulls’ hopes were inflated upon a price surge above the swing high of $67,788.0 on July 15. The price rose by almost 7% that day, showing energetic bullish momentum. The daily candle of July 15 was the last of three white soldiers, reinforcing the likelihood of the price attacking the all-time high to create a new one.

BTC Key Levels

Demand Levels: $59,459.0, $52,884.0, $49,000.0
Supply Levels: $67,064.0, $71,213.0, $80,000.0

What Are the Indicators Saying?

The sudden surge in mid-July dominated the Moving Averages (Periods 9 and 21), indicating an established bullish reversal. However, the recent price decline from the swing high of $69,963.0 has fallen below these Moving Averages, showing weakness.

The Elder Ray (Bull and Bear) power oscillator, which started reading positive in mid-July and showed the domination of buyers, has slipped into the negative region with a red hue, indicating sellers’ dominance. The price has fallen by over 9% since the current decline began. The next major demand level in sight is $59,459.0. The price may need to retest this demand level to regain its bullish momentum.

Bitcoin is expected to eventually create a new all-time high, but given the negative price action signs, this achievement may not be immediate but rather elongated.

Learn from market wizards: Books to take your trading to the next level

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  John Williams

• 

  Graham Neary

• 

  mattcollom

• 

  Charles Russell-Pavier