Bitcoin bulls find themselves in a precarious position as prices falter once again around the crucial $122,000 mark, raising the specter of a bearish double top pattern in the market. This technical formation, which occurs when prices hit two peaks with a moderate decline in between, is a warning sign for traders. And it’s not just the technicals—market sentiment seems to be shifting as well, particularly with the impending release of the U.S. Consumer Price Index (CPI) report.
Bulls Stumble at $122K Resistance
The cryptocurrency’s efforts to break through the formidable $122,000 barrier have met with repeated setbacks. A close inspection of the daily chart underscores this pattern; Bitcoin’s rally stumbled precisely where it did on July 14, reflecting a potential weakening in bullish momentum. Omkar Godbole, a Chartered Market Technician at CoinDesk, points out that this pattern could signal a bearish turn for Bitcoin if the neckline at $111,982 is breached.
“If Bitcoin can’t hold above $122,000, we might see a sell-off down to $100,000,” warns Godbole. This target isn’t arbitrary—it’s calculated using the measured move method, a favorite among technical analysts. Essentially, subtracting the difference between the twin peaks and the neckline from the neckline itself gives us this potential downside. For more insights on potential price movements, see Bitcoin Price Crash To $100,000 Or Rally To $122,000? Analyst Shows Game Plan For BTC.
Market’s Eyes on U.S. Inflation Data
What’s more intriguing is the timing. This struggle at the $122,000 level coincides with today’s anticipated release of the U.S. CPI data. The report is expected to influence Federal Reserve policies, which, in turn, could ripple through financial markets, including cryptocurrencies. “A higher-than-expected CPI could exacerbate Bitcoin’s woes,” notes an analyst from TradingView. With buyer enthusiasm seemingly waning, any shock from inflation data could tip the scales in favor of the bears. As explored in Bitcoin Bulls Take Another Shot at the Fibonacci Golden Ratio Above $122K as Inflation Data Looms, the intersection of technical and macroeconomic factors is critical at this juncture.
Historically, the cryptocurrency market has been sensitive to macroeconomic indicators. For instance, earlier this year, Bitcoin experienced a similar double top near the $100,000 mark. The fallout saw prices plunge below $75,000 by early April. The current setup resembles that past scenario, suggesting that the market could be in for a rough ride.
Historical Context and Technical Nuances
The double top formation is not just about numbers; it’s about market psychology. It typically signals a reversal after a sustained uptrend, which Bitcoin has certainly been on since its lows earlier this year. According to technical analysis theory, the spread between the peaks and the trough should be at least 10%, and the gap between the peaks should not exceed 5%. While these are guidelines rather than hard-and-fast rules, they provide a framework for understanding market dynamics.
Bitcoin’s support levels are currently pegged at $114,295 (the 50-day Simple Moving Average), $111,982, and the ominous $100,000. Resistance stands at $120,000, $122,056, and $123,181, making these pivotal points for traders to watch as the market unfolds.
Looking Ahead: Uncertainty Looms
As Bitcoin treads water, the market is rife with speculation. Will it break the neckline and confirm the double top? Or will bulls muster the strength to overcome resistance and push prices higher? The upcoming U.S. CPI release could very well be the catalyst that determines Bitcoin’s next move.
In the meantime, traders and analysts alike are keeping a keen eye on both technical signals and macroeconomic factors. “It’s a critical juncture,” says one industry insider. “The next few days could set the tone for Bitcoin’s trajectory through the rest of the year.” As always, the crypto market remains unpredictable—raising questions about whether the current trends will hold or if a new chapter is about to begin.
In the world of Bitcoin, where fortunes can change in an instant, one thing remains constant: the volatility that makes it both captivating and confounding. The coming weeks promise to be anything but dull.
Source
This article is based on: Watch Out for Potential Bitcoin Double Top as Bulls Fail to Break $122K Again
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Traders Watch CPI for Fed Cues: Crypto Daybook Americas
- Bitcoin Price Closes in on All-Time High as Traders Await Key Inflation Data
- Weakness Begins to Emerge For Bitcoin as Crypto Market Trends South
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
