Analyst: Bitcoin's upward momentum has started to slow down, cautioning the emergence of a potential double top pattern

BlockBeats News, August 12th, Coindesk analyst Omkar Godbole stated that Bitcoin's upward momentum has slowed, increasing the potential for a bearish technical formation known as a double top. Looking at the daily chart, the bulls on Monday failed to sustain a breakthrough above the key Fibonacci level of $122,056, a pattern that closely resembles the situation on July 14th. Two instances of failing to hold above a key price point with brief pullbacks in between are typical characteristics of a "double top" formation. The neck line of this formation is the lowest point reached during the brief pullback at $111,982, which is a crucial support level to watch.

If the price decisively falls below this neck line level, it will confirm the breakdown of the double top formation, potentially triggering selling pressure down to $100,000. The resistance levels are $120,000, $122,056, $123,181. The support levels are $114,295, $111,982, $100,000.

As the market enters the phase of today's CPI data release, the bears have gained significant advantage. The exhaustion of buying pressure indicates that the market is particularly vulnerable to Tuesday's U.S. inflation data (if higher than expected). In other words, the current buying power may not be sufficient to absorb the selling pressure that could arise due to higher inflation and reduced expectations of Fed rate cuts. In this scenario, the market may experience a rapid decline.