With the cryptocurrency under a cloud of bearish signals, Bitcoin’s price is in the spotlight as it nears the $79,600 target. The Moon Show has put forward a double top and daily bearish divergence to explain the prevailing market conditions.
Bearish Divergence Signals Downtrend
The host of the show points to the bearish divergence on the daily chart as what is fueling the negative mood of late. It is an indicator that has been dependable in the past for predicting a downturn in the crypto space; when momentum does not keep pace with new price highs, a decline is often in store. The analyst emphasizes this, noting it is a harbinger of corrections and lends credence to the current bearish case.
Double Top Pattern and Resistance Levels
Then there is the matter of the double top pattern the analyst has identified in the Bitcoin chart. A time-honored reversal pattern, it is taken to mean the uptrend is over and a descent will follow. On top of that, Bitcoin is approaching a level of resistance that has long been a formidable obstacle, which only serves to add to the bearish picture. Put these technical elements together and one can expect more weakness in the price.
Analyst’s Target and Market Implications
For his part, the analyst at The Moon Show sees further downside and has put a $79,600 figure on the table as a bearish objective, one the price is closing in on. Historical precedent suggests that such patterns result in considerable drops, so it is a number on everyone’s radar. The advice from the analyst is for those in the market to be circumspect and perhaps scale back their exposure as Bitcoin approaches this threshold.
This article reflects the channel author’s opinion and is not investment advice.
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Source — The Moon Show: https://www.youtube.com/watch?v=jkaXTpoT-nQ
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