Bitcoin price failed at the $30,000 level twice this year, forming a possible double top pattern that should worry investors. Last week, news that Elon Musk’s SpaceX liquidated its entire Bitcoin stash sent the price lower. The company sold Bitcoin worth $373 million, leading to one of the largest daily liquidations by volume in history. In just 20 minutes, Bitcoin price crashed by more than 7%.
Tesla sold 75% of its Bitcoin holdings last year, and SpaceX followed suit this year. This raises the question of how this will affect Bitcoin price and whether the market can bounce back.
The double top pattern suggests more weakness might come. The measured move hints at further downside into the $20,000 area. This is equal to the distance from the top to the neckline, projected from the neckline. The chart shows the two tops formed at the $30,000 area and the neckline at the $25,000 area.
To get back in control, Bitcoin must break above the double top area. However, the bias is currently bearish, and the focus is on a potential bearish breakout below the neckline. Investors should be aware of this possible bearish scenario.