Experts explained why the "double top" does not threaten the main digital coin, and at what point there will be a new wave of asset growth
On the weekly chart of Bitcoin, a figure is formed from the technical analysis "double top", which indicates a possible reversal of the market and its transition to a "bearish" phase.
On October 27, the bitcoin price dropped to a two-week low of $ 58 thousand. Experts topplabs.org explained whether it is worth expecting an update to the historical maximum of bitcoin in the current growth cycle, or it is already completed.
The likelihood of decline is low
The formation of a "double top" on the weekly chart says little, since it is a long-term chart and the formation of such patterns there is not uncommon, says Mikhail Karkhalev, financial analyst at Currency.com crypto exchange. According to him, the appearance of a "double top" pattern on a daily or four hour chart also has a chance of a 50/50 collapse, since there is still a fundamental background that easily breaks such patterns.
“In fact, there was a renewal of the maximum, which in the short term usually ends with even more powerful growth,” the analyst says.
Karkhalev called the current level of the bitcoin price the middle of the growth cycle. The analyst is confident that the potential for growth in the cryptocurrency market remains and it is significantly higher than the likelihood of a collapse.
Confident bullish trend
Technical analysis indicates that there is no talk of any price reversal and transition to a "bearish" cycle, says Viktor Pershikov, lead analyst at 8848 Invest. In his opinion, for the realization of the "double top" pattern, the price of the first cryptocurrency must fall below $ 40 thousand, which is not expected by the end of this year.
“The current cycle of Bitcoin movement is a strong bullish trend with local corrections. The next growth target is the level of $ 70 thousand, ”the analyst explained.
A new wave of the arrival of institutional investors in the crypto market will occur after the total capitalization of crypto assets exceeds $ 3 trillion, Pershikov predicted. According to him, liquidity is important for large investors, therefore, against the background of reaching new maximum capitalization, large purchases of cryptocurrency will increase.