Bitcoin (BTC) might be preparing for a potential drop to $75,000 if it confirms a double top bearish reversal pattern.
A double top pattern forms when the price hits two consecutive peaks of nearly the same height, with a trendline drawn across the low point between these peaks. If Bitcoin fails to break above the first peak and starts to decline, it signals that the bullish momentum is weakening. The reversal from an uptrend to a downtrend is confirmed when the price breaks below the support trendline, known as the neckline.
Currently, Bitcoin has retraced back to around $100,000 after failing to sustain its rally above the high from December. This suggests that a double top may be in formation, with the neckline support positioned at approximately $91,300.
If Bitcoin closes below this neckline support, the bearish pattern will be confirmed, possibly triggering a move towards the $75,000 target. This target is derived by subtracting the distance between the peaks and the neckline from the neckline price level.
