According to BlockBeats, Coindesk analyst Oliver Knight has pointed out similarities in Bitcoin’s recent price action with on-chain data from 2021, hinting at a possible ‘double top’ formation. Knight has stressed the significance of monitoring the weekly Relative Strength Index (RSI), which has exhibited bearish divergence in March 2024, December 2024, and May 2025. The RSI, a crucial technical tool, evaluates average price gains and losses to determine if an asset is overbought or oversold. Bearish divergence occurs when the RSI descends while prices ascend.
📉 Is Bitcoin Headed for a Downtrend?
Bitcoin investors are now on edge as the resemblance to a historical double top pattern raises concerns about a potential price downturn. The analysis by Knight highlights the importance of the RSI indicator, suggesting a possible shift towards bearish sentiment in the market. Traders are advised to keep a close eye on key support levels and market dynamics to gauge the future direction of Bitcoin’s price.
⚡ What’s Next for BTC?
If Bitcoin fails to break above the recent highs and instead starts to decline, the next major support levels to watch are around $60,000 and $55,000. These levels have historically served as strong support zones and could determine the extent of any potential downside. On the upside, a break above the recent highs could invalidate the double top scenario and pave the way for further bullish momentum.
🤔 Should You Adjust Your Investment Strategy?
With the double top structure looming over Bitcoin, investors might consider adjusting their risk management strategies to prepare for increased market volatility. Diversification, setting stop-loss orders, and closely monitoring key technical levels can help mitigate potential losses in case of a market downturn.
Don’t miss out on staying informed about Bitcoin’s price movements and market trends. Stay tuned for more updates and analysis to make well-informed investment decisions.
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