The price of Bitcoin has experienced a tumultuous week, plunging to its lowest mark in six months on Wednesday, April 9. The leading cryptocurrency displayed some resilience, rebounding above the $80,000 threshold after U.S. President Donald Trump decided to pause trade tariffs on all countries aside from China.
As the weekend begins, BTC is starting off on a positive note, climbing back above $83,000 late on Friday. However, this uptick seems to be a short-lived respite, as a well-known crypto analyst has pointed out a trend that could influence the coin’s path in the forthcoming weeks.
BTC Faces Potential Correction Due to Double Top Pattern
In a post on the X platform dated April 11, crypto analyst Ali Martinez shared an intriguing perspective on Bitcoin’s price movement following its recent rally. The analyst suggested that this recent rise could foreshadow another correction for Bitcoin, potentially bringing it down to around the $74,000 mark.
This pessimistic outlook is grounded in the potential development of a “double top” pattern on the BTC hourly chart. The Double Top pattern, a concept in technical analysis, resembles the letter “M” and consists of two consecutive price peaks.
Typically infrequent on most charts, the double top pattern indicates that investors may be looking to take profits from an extended bullish run. Thus, this “M” formation can serve as a robust indicator of trader fatigue and a forthcoming bearish reversal.
Interestingly, the chart above indicates that Bitcoin has recently completed a “double bottom” pattern — the inverse of the Double Top — within the hourly timeframe. The double top saw the premier cryptocurrency plummet from above $83,000 to roughly $74,000 in just two days.
With BTC seemingly peaking around the $84,000 level, a potential “M” pattern appears to be forming on the hourly chart. Should Bitcoin fail to surpass the resistance near $84,000, the market leader might brace for another downturn.
It’s important to monitor the support around the $78,000 level, where BTC last rebounded above $83,000. However, a confirmed close beneath this support threshold could suggest a more significant correction towards $74,000 — representing nearly a 15% decline from the current price.
Bitcoin Price Overview
As of now, Bitcoin is priced around $83,800, reflecting an increase of more than 5% in the past 24 hours.
