Bitcoin Bulls Falter Again: Is a Double Top Forming After Failed $122K Break?

Bitcoin's latest rally hits a wall—again. The $122K resistance level remains unconquered, sparking fears of a double-top pattern that could send shockwaves through crypto markets.

Here's why traders are sweating...

The $122K Ceiling Holds Firm

For the second time this month, BTC bulls couldn’t muster enough momentum to smash through the critical $122K barrier. Now, chartists are eyeing the dreaded 'double top'—a classic reversal signal that could spell trouble for overleveraged longs.

Liquidity Hunt Turns Sour

Market makers appear to be playing ping-pong with retail traders, baiting breakout bets before swiftly pulling liquidity. Another reminder that in crypto, the house always wins—until it doesn’t.

What Comes Next?

If history rhymes, we might see a 15-20% correction before the next leg up. But with institutional flows still strong, this could just be another fakeout before the real breakout. Either way, buckle up—volatility’s back on the menu.

Funny how 'decentralized' markets still dance to Wall Street’s algo-driven tune. Some things never change.

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.