The double top pattern scenario suggests BTC will return to the level of $95,000
The weekly candle close of Bitcoin shows the possibility of forming a double top pattern, similar to 2021 – a bearish reversal pattern, marked by two consecutive peaks at the same price level, signaling weakening upward momentum.
In 2021, this pattern led to a significant correction of 77%, as BTC fell from around $69,000 to below $16,000 within just a few months afterward.
The current similar setup is increasing short-term bearish risks, unless the price reverses quickly, according to analysis from Swissblock.
If the double top scenario unfolds like in 2021, Bitcoin risks falling to the 50-day EMA (red line) around the level of $95,000 in September, and may even drop further to the level of $81,000.
The 50-week EMA has served as a strong accumulation zone since June 2023.
