Bitcoin’s double top pattern has appeared at every major cycle peak, indicating the current surge may precede a market downturn.
Synthetic liquidity from Tether, not real demand, is driving Bitcoin’s recent rally, providing whales with exit opportunities.
Incoming stablecoin regulations are prompting insiders to shift investments from crypto to gold and tangible assets.
Bitcoin's latest move above the $100,000 level is inviting questions from veteran analysts. A common technical trend is now emerging again, which reflects a likely shift in the direction of the market.
Technical Pattern Suggests Market Turnaround
Jacob King, a financial commentator, recently highlighted on X (formerly Twitter) that Bitcoin appears to be completing a textbook double top pattern. This formation has occurred at every major market peak—specifically in 2017, 2019, and 2021.
According to King, the current structure mirrors previous cycles where a sharp rise was followed by a twin-peak formation, preceding prolonged bear markets. The historical consistency of this pattern adds weight to his claim that the market may be entering a downward phase.
This recurring structure could suggest that the current price movement is less of a sustainable rally and more of a repetition of past cycles. The pattern alone, observed at 100% of Bitcoin’s earlier peaks, is enough for some market veterans to reassess short-term bullish sentiment.
Concerns Over Market Liquidity and Demand Sources
King also raised concerns over the legitimacy of Bitcoin’s recent price strength. He argues the rally is not driven by authentic market demand but instead by synthetic liquidity flows—primarily from stablecoin issuer Tether.
In his post, he pointed out that many retail investors believe this rally stems from institutional or government interest. However, King claims it is artificially supported by insiders using Tether to create exit liquidity for large holders.
He warns that this setup is not new and has been used before to offload large positions under the guise of price momentum. The focus on Tether’s role in market mechanics adds a layer of skepticism surrounding the current bullish narrative.
Regulatory Pressure May Reshape the Market
Adding to the bearish outlook, King noted that new regulations targeting stablecoins are likely on the horizon. These rules may disrupt the flow of synthetic liquidity that has allegedly propped up the market.
He emphasized that insiders appear to be rotating their capital into gold and other tangible assets ahead of possible regulatory intervention. This shift signals a cautious approach from well-informed players.
As stablecoin scrutiny increases, any disruption in liquidity channels could introduce volatility and a correction in Bitcoin’s price. King’s perspective serves as a warning for investors closely watching the crypto market’s next move.
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