Bitcoin (BTC) could fall to $75,000 if it triggers a bearish reversal pattern known as a “double top.”
A double top includes two consecutive highs at approximately the same price, with a trend line passing through the low point between these highs. Failure to break above the previous high, followed by a subsequent decline, suggests that the uptrend is losing momentum.
Thus, a possible break of the horizontal trend line support, the double upper neckline, would confirm a bullish to bearish trend change.
BTC has returned to $100,000 at the time of writing, having failed to maintain a foot above the December high last week. In other words, BTC appears to have formed a double top, with neckline support positioned around $91,300.
A UTC close below the neckline would confirm the bearish reversal trend, potentially triggering a decline to $75,000. This goal is calculated using the measured movement method, by subtracting the gap between the twin peaks and the neckline from the neckline level.
