Indeed, a group of Bitcoin analysts now believe that the BTC price will fall below the $50,000 mark.
The frequency with which Bitcoin fails to break through higher resistance levels has led to the formation of a double top price pattern. This could potentially lead to a larger drop to $50,000.
BTC seems to be following this pattern and is currently testing its support level.
A double top pattern forms when the price reaches similar highs with a slight dip between the two. Support is maintained above a common line known as the “neckline.”
The BTC Drop Could Continue
This pattern generally resolves when the price falls below the neckline. The potential drop would be equal to the distance between the tops and the neckline.
Indeed, Bitcoin could break out of its current range to turn into a peak. This could lead to a larger drop.
This chart pattern should be considered a baseline scenario unless it is invalidated. A drop to $45,000 is possible.
Moreover, as seen over the past three months, range trading is a complex phase, often marked by several false breakouts.
Top formations have historically left the average retail investor vulnerable. Many Altcoins may suffer significant declines.
Despite the potential positive impact of the US elections and the Consumer Price Index, the price could still undergo a larger correction.
Significant Bullish Potential
Some traders in cryptocurrencies are speculating on the Bitcoin price after the April 20 halving event. This event halved the Bitcoin miners’ block reward from 6.25 BTC to 3.125 BTC.
Bitcoin price action always unfolds in the same way after the 2016 halving cycle. It revolves around the previous cycle’s peaks.
There could be considerable potential for further upward movement in the short term. The market is around 40% into the bull market phase.
Moreover, the recent drop in BTC price below $60,000 highlights the opportunity to buy more on the dips. And this before Bitcoin enters a parabolic bullish trend.
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