Bitcoin Forms M-Pattern: Further Decline Possible?
Bitcoin (BTC) is currently forming an M-pattern (Double Top) after a strong rally, experiencing a sharp decline. In this post, we will analyze Bitcoin’s technical outlook and discuss possible trading strategies for the coming days.
1. Bitcoin Chart Analysis
M-Pattern (Double Top) Formation in Progress
Bitcoin faced strong resistance at $99,425 twice before starting a downward move, now attempting to break the neckline support. If the M-pattern is fully formed, further declines are likely.
Key Support Levels to Watch
As of the current price ($80,949), the following support levels are crucial:
First Support Level: $78,217 → Short-term rebound possible
Second Support Level: $75,000 – $77,000 → Strong support expected
Third Support Level: $70,000 – $72,000 → Potential target if the M-pattern completes
Moving Average Analysis
Short-term EMA (6,16) Death Cross → Bearish signal
Break below EMA (50) at $88,845 → Mid-term bearish trend possible
Gap widening from EMA (200) at $94,481 → Further correction needed for a bullish reversal
Indicator Analysis
MACD: Bearish momentum, suggesting continued decline
Stochastic RSI: Oversold (near 0), possible short-term bounce
RSI (6): At 14 (oversold zone), potential for rebound but further decline cannot be ruled out
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2. Bitcoin Price Outlook & Trading Strategy
✅ Expected Price Targets
A rebound may occur around $78,000 support
If the M-pattern fully plays out, Bitcoin could drop to $70,000
Trading Strategies
Short (Sell) Strategy
Look for rejection near $83,300 – $85,000 resistance for short entry
Target: $78,000 → $75,000 → $70,000
Stop-loss: Above $86,000
Long (Buy) Strategy
Consider long positions if a strong rebound occurs at $78,000 support
Target: $83,000 – $85,000
Stop-loss: Below $76,500
Due to high market volatility, always use stop-loss orders for risk management!
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3. Conclusion & Key Takeaways
Bitcoin continues to decline as the M-pattern formation progresses. The $78,000 – $75,000 range serves as a crucial support level. If broken, Bitcoin could decline further to $70,000.
Quick Summary
✅ Short Entry: Look for rejection at resistance
✅ Long Entry: Consider buying near key support
✅ Risk Management: Set stop-losses and adjust based on market movements
Stay updated with market trends and adjust your strategies accordingly!
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