This is a daily analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
The bitcoin
rally has stalled, raising the possibility of a potentially bearish technical formation: a double top.
A close examination of the daily chart reveals that bulls failed to sustain a rally above the key Fibonacci level of $122,056 on Monday, a performance that precisely mirrors a similar rejection on July 14, according to data source TradingView.
This dual failure to establish a foothold above the key price point, separated by a brief pullback, is a hallmark of the double top pattern. The neckline of this pattern, drawn from the low of $111,982 reached during the brief pullback, is the key level to watch on the downside.
A decisive move below that level would confirm the double top breakdown, potentially opening the door for a sell-off to $100,000. That level is arrived at by subtracting the gap between the twin peaks and the neckline…
