BTC Double Top Pattern Shows Signs of Weakness

Bitcoin has displayed a double-top chart pattern on the daily chart, a common sign of a bearish reversal. The market has experienced 43 consecutive days of down-close prices, indicating a loss of momentum on the daily chart.

Bulls’ hopes were inflated upon a price surge above the swing high of $67,788.0 on July 15. The price rose by almost 7% that day, showing energetic bullish momentum. The daily candle of July 15 was the last of three white soldiers, reinforcing the likelihood of the price attacking the all-time high to create a new one.

BTC Key Levels

Demand Levels: $59,459.0, $52,884.0, $49,000.0
Supply Levels: $67,064.0, $71,213.0, $80,000.0

What Are the Indicators Saying?

The sudden surge in mid-July dominated the Moving Averages (Periods 9 and 21), indicating an established bullish reversal. However, the recent price decline from the swing high of $69,963.0 has fallen below these Moving Averages, showing weakness.

The Elder Ray (Bull and Bear) power oscillator, which started reading positive in mid-July and showed the domination of buyers, has slipped into the negative region with a red hue, indicating sellers’ dominance. The price has fallen by over 9% since the current decline began. The next major demand level in sight is $59,459.0. The price may need to retest this demand level to regain its bullish momentum.

Bitcoin is expected to eventually create a new all-time high, but given the negative price action signs, this achievement may not be immediate but rather elongated.

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