Bitcoin May Be Reaching a Double Top, Suggesting a Possible Pullback to $75K.

Bitcoin (BTC) may be facing a potential decline towards $75,000 as it shows signs of forming a double top bearish reversal pattern.

A double top is characterized by two peaks that are nearly equal in height, with a trendline connecting the low point between them. When the price fails to surpass the first peak and starts to drop, it suggests that the upward momentum is fading. The bearish reversal is confirmed when the price breaks below the trendline support, also known as the neckline, signaling a shift from bullish to bearish market sentiment.

At present, Bitcoin has retraced to around $100,000, unable to hold its position above the December high. This failure to break new highs indicates the possible formation of a double top, with the neckline support located around $91,300.

Should Bitcoin close below this neckline, it would validate the bearish reversal, potentially leading to a price drop towards the $75,000 mark. This target is calculated by subtracting the vertical distance between the peaks and the neckline from the neckline support level.