$BTC Bitcoin risks a double top reversal to $100K

Bitcoin consolidates above $105,000 for two days as it recovers from the sharp drop witnessed on Thursday. At the time of writing, BTC trades at $105,621, failing to overcome the $106,058 resistance level, December’s highest closing price.

The price action movement warns of a double top reversal alongside a short-term resistance trendline, adding headwinds. Traders anticipating a bullish trend must await a daily closing above $106,058 to avoid any traps.

A potential breakout could prolong Bitcoin’s trend towards its all-time high at $111,980.

Investors must look out for a buy signal from the Moving Average Convergence/Divergence (MACD) indicator. The blue line crossing above the red line concurrent with a rise of the green histogram bar above the zero line signals an uptrend.

However, the Relative Strength Index (RSI) at 53 is turning sideways near the halfway line, aligning with the uncertainty in BTC. Notably, a lack of divergence between the two recent RSI peaks and a potential double top in Bitcoin limit the bearish risk.

On the other hand, amid the rising uncertainty due to the scheduled talks in London, Bitcoin could retest the $100,718 support floor, last tested by the low on Thursday.