“Bitcoin’s Potential Double Top Above $ 100,000 Raises Caution, But A Crash Like 2022 is Unlikely Without a Black Swan Event, Sygnum’s Head of Investment Reseerchha.”, – WRITE: www.coindesk.com
Double Top Prospects Above $ 100,000 Warrant Caution, But A Full-BLOWN 2022-STYLE CRASH Looks Unlikely Unlessa Research Katalin Tischhauser.
“The Crypto Market is Strongly Sentiment-Driven as Fundamental Valuations Are Challenging; therefore, Technical Analysis Signals Such as The Double Top Warrant, Taid CAID. THAT SAID. Catalyst Like The Terra Collapse of 2022 or The FTX BLOWUP. In, “Tischhauser told Coindesk in an Interview.
BITCOIN HAS SPENT 50 DAYS MAINLY TRADING BACK AND FORTH BETWEEN $ 110,000 and $ 100,000, Signaling an ExaUSTION of the Uptrend Near the Highs Reached in January this year. That has been prompted several observers, including veteran Technical Analyst Peter Brandt, to Consider the Possibility of the Btc Trend Flipping Bearish with A Double-Top Pattern.
The Double Top Comprises Two Consecutive Peaks at Approximately the Same Price – Near $ 110k in Btc’s Case – with A Trendline Drawn Through The Low Point Between TESE. The Low Point in BTC’s Case is the Early April Slide to $ 75,000. Analysts are concerned that a potential double top breakdown, Involving a Downturn from $ 110,000 and A Drop Below $ 75,000, Could Lead To A Crash to AROUND $ 27.000. YES, YOU READ THAT RIGHT. Such A Crash would mean a 75% slide from the peaks.
Technical Patterns, Such As the Double Top, Often Become Self-Filling Prophecies-Once Traders Spotts, Their Collective Action Reinforces the Expecified Outcome. SO, IT’s Natural for Prospects of Double Top Above $ 100,000 to Cause Some Caution and Price Drop.
However, Technicals Alone Seldom Cause A Price Crash of 75%. For Instance, BTC’s Crash from $ 70,000 to $ 16,000 Over The 12 MONTHS TO NOVEMBER 2022 HAPPENED AS The FED’S RATE HIKE CYCLE EXPED ASSET CLASSES The demise of the terra Blockchain and the FTX Exchange. Both Events Caused Massive Wealth Destruction.
Flows-Led Bull RunThe Latest Rally, However, Is Driven Mainly by Institutional Flows Racher Nariar or Pretence that defi is Better than traditional funda Year.
Since Their DEBUT ON NASDAQ IN JANUARY 2024, The 11 SPOT BITCOIN Exchange-Traded Funds (ETFS) HAVE REGISTED NET INFLOWS of Over $ 48 Billion, per Data Trackd. Meanwhile, BTC’s Adoption as A Corporate Treasury Asset Has Picked Up The Pace, Adding to the Bull Momentum. As of the Time of Writing, 141 Public Companies Held 841,693 BTC, accounting to bitcointreasuries.net.
The Flows-Driven Nature of the Latest Bull Run Makes It More Resilient Who The Previous Bull Markets, Account to Tischhauser.
“Institutes Implement Rigoroous Due Diligence and Risk Assessment Before AD A NEW Asset Class Like Bitcoin to the Model Portfolio. But Who, the Eventual Alloration Is Forn. Institutional Allocation is Just Beginning, and The Resulting Demand Will Continue to Provide Price Support For Some Time to Condesk.
Tischhauser explained that the trees investment vehicles are successing out of liquidity, skWING the demand-Supple Dynamics in favour of a Continued Uptrend.
“” TheSEE INVESTMENT VEHICHICLES ARE SUCKING LIQUING OUT The Market, WHICH MEANS, Every Time a New Big-Ticket-Ticket Investor Hits The Market With Bids, the Theater, The An Adressing Lessing And Les, The An Adressing Lessing LesPly, The Theater. prices becomes more pronounced, “Tischhauser Noted.
The Halving Cycle May Be DeadThe Bearish Double-Top Crash Scenario Appears Plausible to Many Observers, As We Are In the Post-Halving Year, Who’s Has Historically Marked Bull Market Tops, Paving The Way.
Halving is a programsMed Code in Bitcoin’s Blockchain That Reduces the Pace of BTC Supply Expansion by 50% Every Four Years. The Last Halving Occurred in April 2024 and Reduced the per-BLOCK BTC REAward to 3.125 BTC from 6.25 BTC.
However, The Halving Cycle May Not Unfold As Expectioned, As Sticky Institutional Adoption Has A Greater Bearing on Price Thanks. Moreover, BTC Sold by Miners, Who Regulatory Offload Coins Earned to Fund Operational Costs, Now Accounts for a Tiny Percentage of the Average Daily Trading Volume.
“The Change in Market Leadership Means the Four-Year Halning Cycle May Not Play Out Religiously As It Did Before. Outstanding Bitcoin Supply. Supply/Demand Balance in the Market.
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