Bitcoin’s (BTC) upward momentum appears to have waned, showing signs of a double top bearish reversal pattern in the short-term price charts.
Last week, BTC reached a high of nearly $87,400, but prices fell to about $84,000 on Friday before making a slight recovery to above $87,000, only to halt again. This formation of two distinct peaks at similar levels, with a dip in between, suggests the development of a classic double top pattern, a bearish indicator that often marks the conclusion of an uptrend.
To confirm the double top pattern, BTC needs to drop definitively below the “neckline,” the support level between the two peaks, currently positioned around $86,000.
If this drop materializes, BTC could see a decline towards $75,000 or even lower in the near term. Nevertheless, long-term charts indicate that the asset remains in an upward trend.
Traders have responded positively to the U.S. Federal Reserve’s accommodating approach to inflation and recent easing of concerns regarding upcoming U.S. tariffs, contributing to gains over the past week.
However, the apparent lack of correlation with altcoins during BTC’s fluctuations signals that this recent price movement may be devoid of wider market backing, posing the risk of a deceptive “fakeout” rally.
A potential decline in BTC is likely to affect major tokens as well, undermining recent gains and dampening hopes for a sustainable rally. Dogecoin (DOGE), which is heavily influenced by market sentiment and speculative trading, may face exaggerated losses if Bitcoin’s bearish trend unfolds, while XRP might experience weakened momentum, given its sensitivity to market sentiment and regulatory news.
Solana could be particularly vulnerable due to its recent volatility and technical signals — nearing a “death cross” (a bearish warning where the 50-day moving average falls below the 200-day) around mid-April, a pattern historically linked to further losses.
At present, Bitcoin is hovering around a critical area. A weekly closing price below $84,000 could affirm the bearish double top scenario, while a movement above $87,500 could negate it, possibly resuming bullish momentum.
