Traders who claimed that Bitcoin prices plummeted in 2017 raised concerns about “double tops”

Bitcoin (Bitcoin) May be forming the so-called “double top” model. After falling more than 30% from the historical high of $69,000, senior trader Peter Brandt stated that he correctly called crypto in December 2017. The currency market is famous for peaking.

The bubble burst.The bull market is Bitcoin After a period of time.Simulate the gold chart of the ward in 2011 pic.twitter.com/AUSiGH0eCg

— Peter Brandt (@PeterLBrandt) December 22, 2017

Chief Executive Officer of The Factor LLC recall After the second attempt, Bitcoin was unable to extend its price rebound to an all-time high close to $65,000. At the same time, he explained the immediate support level of the BTC price at the so-called neckline close to $30,000, and warned that it would fall further below this key level.

Is it realistic for the price of Bitcoin to plummet by 50%?

In detail, traditional chart analysts believe that the formation of two consecutive tops, each of which will lead to a strong price retreat, as a sign of a bearish reversal. The downside target in the double top scenario is about as deep as the height of the formation.

But the Double top down target It’s a bit impractical here, because confirming the pattern would indicate that the price of Bitcoin has fallen by nearly $35,000. This means that in a perfect world, the price of BTC is at risk of falling below $0, which is extremely unlikely to happen.

Nevertheless, if the price falls below the $30,000 neckline, Bitcoin’s ultimate downside goal It may become a 200-week exponential moving average (200-week EMA; orange wave in the chart below), which is currently about 50% below the current price level, close to $23,500.

As shown by the upward arrow in the above chart, the 200-week moving average played an important role in bottoming the bear market. However, Brandt reminded:

“Before it is completed and confirmed, the chart mode is not a chart mode. Until then, it is just my interest.”

Is it just another BTC price drop?

Bitpanda’s Chief Product Officer Lukas Enzersdorfer-Konrad ignores the potential bearish outlook and asserts Bitcoin price falls From US$69,000 to US$42,000 is similar to its price plunge in May 2021, which plunged more than 50%, just to make up for all these losses and set new highs later.

“Similar to the recent decline, over-leveraged positions increase volatility and erase most long positions,” Enzersdorf-Conrad told Cointelegraph in an emailed statement, referring to US$2.5 billion in liquidation Within a few hours on December 4, this resulted in an intraday adjustment of approximately 20% for most liquid crypto assets.

The analyst added:

“Under these conditions, the Bitcoin market will take some time to recover. The intraday chart is still volatile, but it is still bullish in a higher time frame.”

related: Bitcoin fell below $47,000, wiping out the October gains-has the bear market begun?

From a bullish technical point of view, a popular independent market analyst with the pseudonym “wolf”, came up with Bitcoin is an oversold asset based on its relative strength index (RSI) reading on the daily chart.

Wolf expects that BTC price will test US$51,780 as its next resistance level and expand the upside target to near US$60,000.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.