According to BlockBeats, Coindesk analyst Omkar Godbole stated on August 12th that Bitcoin's upward momentum has slowed, increasing the likelihood of a potential bearish technical double top formation. On the daily chart, bulls failed to sustain above the key Fibonacci level of $122,056 on Monday, a pattern consistent with a similar failure on July 14th. These two failures to hold above key price points, interspersed with brief pullbacks, are typical characteristics of a double top formation. The neckline of the formation, at $111,982, the lowest point reached during the brief pullback, represents a key support level to watch.
A decisive break below the neckline would confirm a double top breakdown, potentially triggering selling pressure towards $100,000. Resistance levels are $120,000, $122,056, and $123,181. Support levels are $114,295, $111,982, and $100,000.
As the market heads into today's CPI data release, bears have a significant advantage. The drying up of buying pressure suggests the market is particularly vulnerable to higher-than-expected US inflation data on Tuesday. In other words, current buying momentum isn't sufficient to offset the potential selling pressure triggered by higher inflation and diminished expectations of a Federal Reserve rate cut. In this scenario, the market could experience a rapid decline.
