I have analyzed the #BTC weekly chart and marked the key technical levels and patterns. You can find the annotated chart below.
Technical Analysis Summary-
1. Double Top (M-Pattern) Reversal:
• The chart clearly shows a large "Double Top" formation with peaks near the $120,000 mark. This is a classic bearish reversal pattern that often precedes a significant correction.
• The yellow line on the chart traces this "M" shape, showing the failed attempt to maintain the six-figure territory.
2. Key Support Zone ($65,000):
• The current price ($66,142) is testing the most critical historical support zone (marked in green).
• This level acted as major resistance in 2021 and early 2024. For the long-term bullish structure to remain intact, the price must hold above $65,000.
3. Local Resistance ($80,000):
• Following the breakdown from the double top, the $80,000 level (marked in red) has now flipped from support to resistance.
• Any relief rally would likely face heavy selling pressure around this zone.
4. Trend Outlook:
• The orange arrow indicates the current macro-downtrend on the weekly timeframe.
• Bullish Scenario: A successful bounce from $65k could lead to a consolidation phase or a "relief rally" back to $80k.
• Bearish Scenario: A weekly close below $65k would confirm a breakdown, potentially opening the door for a deeper correction toward the $40k-$50k region (the base of the 2024 breakout).
Strategic Recommendation: Traders should watch the weekly candle close relative to the $65,000 level. Maintaining this floor is vital for preventing a transition into a longer-term bear market.
