Bitcoin's (BTC) recovery looks to have run out of steam with an emergence of a double top bearish reversal pattern on the short duration price charts. BTC peaked near $87,400 last week, with prices pulling back to around $84,000 on Friday and staging a recovery to above $87,000 before stalling again. This sequence of two prominent peaks at roughly the same level, separated by a trough, hints at a classic double top formation. This bearish pattern often signals the end of an uptrend. The double top pattern typically requires confirmation through a decisive drop below the "neckline," the support level between the two peaks, which lies at around $86,000. Should this occur, BTC could decline toward $75,000 or lower in the short term. However, long-term charts continue to indicate the asset remains in an ascending range. Traders reacted positively to the U.S. Federal Reserve’s dovish stance on inflation and a cooldown in concerns around the upcoming U.S. tariffs, which have supported gains in the past week. However, the lack of altcoin correlation with BTC’s recent moves hints that the current price action might lack broad market support, raising the possibility of a “fakeout” rally. A potential drop in BTC will likely spread over to major tokens, denting recent gains and hopes of a lasting rally. Dogecoin (DOGE), heavily influenced by market sentiment and speculative trading, could see amplified losses if bitcoin’s bearish pattern plays out, while XRP might see reduced momentum, especially given its sensitivity to market sentiment and regulatory developments. Solana could be particularly sensitive due to its recent volatility and technical indicators — with it coming close to forming a “death cross” (a bearish signal where the 50-day moving average crosses below the 200-day) in mid-April, a pattern that historically leads to deeper losses. For now, bitcoin hovers in a critical zone. A weekly close below $84,000 could confirm the bearish double top scenario, while a push above $87,500 might invalidate it, potentially reigniting bullish momentum.
