Analysis: BTC forms potential $122K double-top pattern, signaling possible downtrend

Bitcoin (BTC) may have formed a potential double-top pattern on the daily chart after failing twice to break through the $122,000 resistance level, CoinDesk reported. A double top, a bearish technical indicator, occurs when two similar highs form after an uptrend, followed by a breakdown below the low between them. According to the analysis, BTC’s rallies stalled at $122,056 on July 14 and Aug. 11, with a short-term pullback to $111,982 between those peaks. That $111,982 level serves as the neckline; a close below it would confirm a reversal into a downtrend. CoinDesk noted that BTC displayed a similar pattern near $100,000 earlier this year before sliding to $75,000 in April. Ahead of the U.S. Consumer Price Index (CPI) release, buying momentum appears to have weakened. A CPI reading above expectations could trigger renewed selling pressure.