FX.co ★ Bitcoin Double Top Or Upside Continuation?

Bitcoin trades at 56,648 lower versus 58,113 yesterday's high and compared to 58,367 all-time high. The price reached a resistance area where the sellers could step in and drive the rate down in the short-term.

Technically, BTC/USD maintains a bullish outlook even if the price action signals a potential Double Top reversal pattern. The price is trapped within an ascending channel, so it could resume its upwards movement as long as it stays above the near-term uptrend line.

BTC/USD At Resistance!

BTC/USD increased as expected and it could pass above 58,367 historical high soon if it comes back and stabilizes above the WL2 and R2 (57,183) levels. Now is hard to talk about a Double Top pattern only because the rate is traded near the $58,367 all-time high.

A false breakout with great separation above it, a major bearish engulfing printed here, or any other reversal pattern could signal a temporary decline again. The Double Top pattern could be validated only by a drop below 43,016 former low, so it's too soon to talk about such a scenario.

Bitcoin Trading Tips!

A bullish closure above 58,367 all-time high is seen as a long signal. A strong rally could validate the breakout above the R2 and WL2. The major upside target remains at the up channel's resistance, around the third warning line (WL3) or higher at the R4 (66,205).

Selling Bitcoin from around the $58,000 psychological level could be indicated only by a strong reversal pattern printed around it.