Bitcoin Stalls Below $87K as Bearish Double Top Pattern Takes Shape
Bitcoin’s (BTC) price recovery is showing signs of exhaustion, with a potential double top formation suggesting a possible shift in market momentum.
BTC recently surged to a high of $87,400 before retreating to $84,000. It then made another attempt to reclaim higher levels but stalled just above $87,000, forming two distinct peaks with a dip in between. This setup resembles a double top—a well-known bearish pattern that often precedes trend reversals.
For the pattern to confirm a bearish breakdown, Bitcoin would need to drop below the critical “neckline” support, estimated around $86,000. If this level fails, BTC could see a sharper decline toward $75,000 or lower. However, on higher timeframes, the cryptocurrency still maintains an overall uptrend.
Recent bullish sentiment was fueled by the U.S. Federal Reserve’s dovish stance on inflation and a reduction in fears surrounding upcoming trade tariffs. However, Bitcoin’s price movement has shown weak correlation with the altcoin market, hinting at a lack of broad investor confidence and raising the risk of a potential “bull trap.”
A deeper correction in Bitcoin could trigger a wave of losses across major altcoins. Dogecoin (DOGE), often driven by speculative hype, could face increased volatility. XRP, known for its sensitivity to broader market trends and regulatory developments, might struggle to maintain its recent momentum.
Solana (SOL) could be particularly vulnerable, as technical indicators point to a looming “death cross” formation, where the 50-day moving average dips below the 200-day moving average—an event that has historically preceded further downside.
For now, Bitcoin remains in a decisive range. A weekly close below $84,000 could validate the bearish double top, while a breakout above $87,500 might invalidate the pattern and renew bullish momentum.
