The price of bitcoin has reached a value not seen since May 15 and a number of traders and analysts believe the market will see a double top. The scenario where bitcoin rises above the $64K all-time high (ATH) and spikes to another ATH after a long and bearish technical reversal pattern.
Double Bubble Discussions Lead People to Believe Another Bitcoin ATH Is Due
On April 14, 2021, the price of bitcoin (BTC) touched an ATH of $64,654 per unit four months ago. The price has been between 29 to 31% lower than the ATH but has been rallying back to that position in recent times.
Year-to-date, BTC is up 326.6% and it gained 51.6% in the last month alone. While the bearish cycle has taken a touch over three months, during that time a number of proponents and analysts said the bull might not be over. Furthermore, some have alluded that 2021’s bitcoin bull run is similar to the 2013 bull run that saw a double top pattern.
This conversation has continued to be topical as BTC has crossed new price levels during the last month and values not seen in 98 days. Essentially, after a long bearish consolidation period, the crypto asset taps two consecutive price highs with a modest reduction in value before the final high.
Technically this is what happened back in 2013, as BTC touched its first high of $255 per coin in April, but the following months BTC dropped as low as $70 per unit. Ultimately in December 2013, bitcoin (BTC) touched an ATH of $1,150 per unit before it went into another bear cycle. On Twitter and cryptocurrency forums, discussions concerning a double top in 2021 have been very topical.
Double Bubble? Traders are watching for signs of a coming second top for bitcoin in 2021, a la the 2013 double top bull cycle. Do you think it’ll happen?
Increasing Evidence, Crypto Sentiment, Shorts & Longs
The founder of Capriole Investments, Charles Edwards, shared a chart that shows: “New evidence for a bitcoin double bubble. In prior cycle tops, bounces were never able to hold unrealized profit and loss above 0.5.”
The crypto fear and greed index hosted on alternative.me indicates the market has a score of 76 or “extreme greed.” Furthermore BTC/USD short positions this weekend are significantly lower than in mid-July. BTC/USD long positions, on the other hand, are much higher at the time of writing.
Do you expect a double bubble or bitcoin to jump above the previous ATH this year? Let us know what you think about this subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Lookintobitcoin.com, Tradingview, Twitter, Charles Edwards,
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