A closer look at the weekly chart reveals a double-top pattern formed by two peaks at similar price levels in late 2021. While corrections followed both peaks, Bitcoin ultimately entered a bear market in 2022 after falling below its 89-week Exponential Moving Average (EMA). The recovery process began last year, accelerating after a bullish crossover of the fast and slow EMAs in October 2023.
Bitcoin's recent struggle to maintain prices above $70,000 raises concerns about a potential correction. Similar price oscillations occurred in 2021, suggesting a repeat could be on the horizon.
Several critical support levels should be monitored closely. If a clear weekly candle closes below $63,500, it could trigger a correction. The next potential support zone lies at the 21-week EMA, currently around $55,200. If the price falls further, historically established support levels from 2023's downtrend at $49,500, $43,200, and $36,900 could come into play.
