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Bitcoin Forms Double Top Similar to 2021: Here are Key Levels to Watch Should a Drop Occur

Author: Content Editor
Bitcoin is showing signs of a double-top pattern, which has raised concerns of a possible market correction similar to what happened in 2021. Market analyst Alan Santana has identified important levels to watch for in case the correction materializes. He noted similarities between the current price action and the double-top formation observed in 2021. Santana highlighted the pattern of rising volume before the first peak and declining volume before the second, indicating reduced market participation. He warned that low volume could lead to a major downturn if the double top pattern holds. Santana cautioned that the recent upward move might be a "fake bullish breakout" or a "bull trap," as it lacked strong trading volume. However, Bitcoin managed to close the week above a key level. Santana identified $70,000 as an important threshold and urged caution, as Bitcoin is trading near a top. The lack of correlation between Bitcoin and several top altcoins supports the idea of a "fake" move. Santana outlined important support levels to monitor in the event of a downturn. In the long-term outlook, he believes the market could experience a deeper correction before a sustained rally leading into 2025.

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