Bitcoin’s Double-Headed Formation Threatens Uptrend Range: $50,000 Collapse?

Bitcoin fell more than 4% dragging its price to $61,000 on Monday. This bearish trend could intensify as the leading cryptocurrency appears to be forming a double pattern as it tests its support level.

The asset fell below a key support level today, which could lead to further declines of over ten thousand.

“Panic time?”

Bitcoin has witnessed a massive surge this year, sparking rallies in the broader crypto market as well. This bullish trend can be largely attributed to the long-awaited launch of several spot Bitcoin ETFs, which has increased institutional engagement and mainstream acceptance.

However, BTC’s value has fallen since hitting an all-time high of nearly $74,000, and the asset shed even more in the past 24 hours, falling to a multi-week high of $61,000. But the latest analysis from 10x Research suggests there could be more pain on the horizon. In fact, BTC could move from its current trading range of $60,000-$70,000 to a higher formation, which could lead to a steeper decline.

Markus Thielen, founder of 10x Research, singled out $61,500 as a crucial threshold in a note to clients, which the asset fell below today. If it doesn’t rebound as much, the cryptocurrency could fall further to the $50,000 low.

The executive memo read:

“Technically, bitcoin appears to be following a double top formation while the support level is being tested. This chart formation should be our base case unless it becomes invalid. This formation could easily see a drop to 50,000 dollars, if not $45,000.”

Double Whammy for Bitcoin

Bitcoin miners have been under tremendous pressure following the fourth halving event. With the significantly higher equilibrium prices, they have been forced to liquidate their holdings, leading to a dramatic reduction in the BTC they held.

As revealed by QCP Capital’s recent analysis, total miner reserves have decreased by 50,000 BTC since the beginning of the year.

Further exacerbating market conditions, the German government sold 3,000 BTC with plans to offload an additional 47,000 BTC in the near future. This was enough to shake investors and subsequently contributed to the overall bearish sentiment.

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