Is Bitcoin forming a double top? Analyst who called Crypto Crash in May examines state of BTC

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The trader who accurately called Bitcoins top just under $ 65,000 says BTC could show a bearish technical pattern.

The pseudonym trader known as Dave the Wave tells his 79,700 Twitter followers that Bitcoin’s chart indicates BTC could form a “double top.” If the trader is correct, it could be a bearish indicator, suggesting that the bulls lack the strength to push the price of the crypto asset to higher highs.

Explains Dave the Wave,

“Double top anyone?” That wouldn’t surprise me because this market has a knack for making every correction more difficult… ”

Source: Dave the Wave / Twitter

According to Dave the Wave’s analysis, the double-top pattern can be confirmed if Bitcoin fails to break above $ 50,000.

Bitcoin is trading at $ 49,132.76 at the time of writing, up more than 13% in the past seven days, according to CoinGecko.

While Dave the Wave says he expects resistance, he notes that his outlook could change if the price of BTC continues to rise.

“A short-term bullish movement calling into question the corrective trend in the medium term. Can the price reach a higher local high? Price racing up the channel as drawn in the medium term. * IF * it can convincingly cross and invalidate this trend, then there is a good chance that the price will not go down a level. * Let’s see *. For now, I still expect price to meet resistance.

Source: Dave the Wave / Twitter

Based on the Dave the Wave chart, BTC is currently facing diagonal resistance and horizontal resistance around $ 50,000. If BTC can crush these resistances, Dave the Wave says his bearish scenario that could send Bitcoin below $ 30,000 would be invalidated.

The trader also shares a chart showing that BTC tends to crash seven months after each spike.

“Is it different this time? If there was one graph that would make $ 100,000 unlikely this year, it would be this one. “

Source: Dave the Wave / Twitter

The chart shows that Bitcoin continued to correct seven months after hitting bull market highs of 2013 and 2017. The largest crypto asset by market cap hit its all-time high of $ 64,804.72 on April 14, it almost six months ago. Dave the Wave suggests that history may be about to repeat itself.

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Featured Image: Shutterstock / Sergey Nivens

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