Bitcoin’s recovery hasn’t been as significant as expected, failing to break through $60,000 even after bullish momentum returned. That being said, expectations of a bearish reversal have become the norm as analysts don’t believe the pioneering cryptocurrency has enough steam to sustain its current momentum. One analyst who believes the price is destined for a decline is Finn Oakes, who predicts a return to $53,000 territory.

Bitcoin is forming a double top pattern

In the analysis that was common on TradingView, cryptocurrency analyst Finn Oakes explains that the price of Bitcoin has now formed a double top. This comes after the price of Bitcoin crossed the $59,000 level twice and failed to successfully break through that level each time.

This double top is shown on the 4-hour hourly chart, where a reversal pattern is formed as a result. This double top is bearish for price and could signal a continuation of the downtrend that started last week. In this case, bulls have an uphill battle ahead of them.

Breaking the double top, the crypto analyst explains that it has now shown $59,000 as a powerful resistance zone. This means that for any rally to happen, the price would have to successfully break through this resistance before it is confirmed.

In contrast to the resistance level, $56,000 has emerged as support for Bitcoin price. This gives both bulls and bears a tight $3,000 space to fight for dominance and push the price either way. Otherwise, the sideways move could continue.

The purpose of the inheritance

Given the double top formation on the 4-hour chart, the crypto analyst expects the price to fall again. In the first scenario, where Bitcoin price breaks below the $56,000 support, the crypto analyst expects a downtrend to the $53,000 level.

However, it doesn’t quite end there if the downtrend doesn’t stop. In this case, the chart shows the price falling below the $53,000 level and heading towards $52,000. Although, this seems to be the worst-case scenario as opposed to the expected target.

Moreover, with volume increasing during a downtrend, the analyst believes this indicates more background selling, which could contribute to the price decline. “Trading volume has increased during recent down days, indicating strong selling pressure. This reinforces the current downtrend,” Oakes said.

At the time of writing, Bitcoin price is struggling to maintain the $58,000 level. However, according to data from Coinmarketcap, it is up 1.08% over the past day.

Featured image created with Dall.E, chart from Tradingview.com