September 26, 2022

Bitcoin Price Analysis: Bulls Must Break This Level To Prevent A Bearish Double-Top

2 min read

Bitcoin bulls need to ensure the daily cost closes above $23,850 today, or else a double top will form on the BTC/USD chart (see listed below).

Double tops are bearish turnaround setups that tend to result in strong downtrends. They form when a property stops working to breach the exact same resistance level twice in a brief time period. The 2nd rejection signals to the marketplace that bullish momentum has actually gone out which a shift in pattern is about to happen.

There’s likewise an apparent RSI divergence (yellow line) over the same timeframe, which supports the existing trend weakening idea. Not to point out, $19 billion has departed from the marketplace since 00:01 (GMT) today, as the Bitcoin dominance is breaking records.

BTC Price Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, we can see the cost has failed to close above $24,000 on two separate celebrations within the last 24 hours (red bar). And, even though the leading cryptocurrency has printed a higher high today, it still hasn’t broken the sloping resistance on the RSI (yellow line on the 4-hour chart).

Once the indication line breaks this area, it should be interpreted as an early indicator that bullish momentum has returned behind Bitcoin and will likely foreshadow a bullish reversal. Nevertheless, until then, we need to anticipate the indicator line to continue down towards the oversold region – – offered the double top forms.

In this bearish case, there are numerous key assistances that will likely come into play during the double leading breakout;

( 1) $22,700 – – 0.236 Fibonacci level.
( 2) $22,500 – – 50 EMA line (blue).
( 3) $22,000 – – Psychological level.
( 4) $21,500 – – Order block support (bottom green bar).

For bullish targets, the $24,000 level will continue to be the main resistance that purchasers will require to break in order to verify that a new bullish trend is underway. Even more above the $24K lies the present ATH around $24,370, prior to the mental level of $25,000.

Overall market capital: $652 billion

Bitcoin market capital: $438 billion

Bitcoin dominance: 67.3%

* Data by Coingecko.

Bitstamp BTC/USD Daily Chart

bitcoin trading
BTC/USD chart via Tradingview. Bitstamp BTC/USD 4-Hour Chart BTC/USD chart through Tradingview.