Bitcoin Bulls Falter Again: Is a Double Top Forming as $122K Resistance Holds Strong?

Bitcoin's latest rally hits a wall—again. For the second time this month, bulls failed to smash through the $122K ceiling, sparking fears of a double-top pattern. Here's why traders are sweating.

The $122K Ceiling: Bitcoin's Glass Floor?

Every failed breakout fuels the bears. With each rejection at $122K, the chart starts looking like a replay of 2021's bull trap—just with extra zeros and more institutional tears.

Double Trouble or Just a Speed Bump?

Technical analysts are dusting off their 'double top' playbooks, while permabulls argue this is just healthy consolidation. Meanwhile, leverage traders keep funding their margin calls with hopium.

Remember: In crypto, history doesn't repeat—it just mints new bagholders at higher price points. The only 'double' most bankers understand is their bonus, not chart patterns.

Early this year, BTC double-topped NEAR $100,000, eventually falling to lows under $75,000 in early April. The double top comprises two peaks separated by a trough and takes roughly two to six weeks to form. The gap between the two peaks must be equal to or less than 5%, with the spread between peaks and the trough being at least 10%, according to technical analysis theory.

These, however, are guidelines and not rules, meaning the backdrop is more important – the pattern should appear after a prolonged uptrend to be valid, which is the case with BTC.

• Resistance: $120,000, $122,056, $123,181.
• Support: $114,295 (the 50-day SMA), $111,982, $100,000.

Bears gain an upper hand ahead of U.S. CPI

The dual failure of bitcoin bulls to sustain gains above $122,000 indicates a clear case of buyer exhaustion, giving bears a significant upper hand as the market heads into today's CPI release.

This exhaustion of buying pressure means the market is now particularly vulnerable to a hotter-than-expected U.S. inflation report due Tuesday. In other words, the buying momentum is not strong enough to absorb the potential selling pressure triggered by an elevated CPI and the resulting drop in the Fed rate cut bets. In this scenario, the market could experience a rapid decline.