Bitcoin Faces Key Test as Double Top Pattern Signals Potential Downturn

Bitcoin (BTC) may be losing momentum after forming a bearish double top pattern on short-term charts. The leading cryptocurrency peaked near $87,400 last week, then dropped to around $84,000 before briefly recovering above $87,000—only to stall again. This price action, with two similar peaks separated by a dip, is a classic sign of a double top, which often marks the end of an uptrend.

For confirmation, BTC needs to break below the pattern’s neckline support at $86,000. If that happens, prices could decline sharply toward $75,000 or lower in the near term. Despite the bearish short-term signals, long-term charts still show BTC in an overall uptrend.

Recent gains have been supported by positive sentiment following the Federal Reserve’s dovish stance on inflation and easing concerns over U.S. tariffs. However, the lack of correlation between BTC and altcoins suggests the rally may lack broad market support, raising concerns of a potential “fakeout.”

If Bitcoin slides, major altcoins could also feel the pressure. Dogecoin (DOGE), known for its speculative nature, may experience outsized losses. XRP, sensitive to regulatory news and sentiment shifts, could lose momentum. Solana (SOL), already facing technical weakness, may be particularly vulnerable as it nears a potential “death cross” formation—where the 50-day moving average drops below the 200-day, historically a bearish sign.

BTC is currently in a critical range. A weekly close below $84,000 would strengthen the bearish case, while a breakout above $87,500 could invalidate the double top and revive bullish momentum.

Traders should watch these key levels closely as Bitcoin’s next move could shape broader crypto market direction.