🧠 Bitcoin (BTC/USD) 3H Analysis – Double Top at Resistance | Bearish Reversal Setup
🧾 Chart Summary:
This chart illustrates a high-probability bearish reversal setup in Bitcoin (BTC/USD) on the 3-hour timeframe. Price action suggests a weakening bullish momentum, with a textbook Double Top pattern forming at a key resistance level. This provides a potential opportunity for short sellers to capitalize on the likely retracement toward lower support areas.
📍 1. Key Levels Identified
🔴 Resistance Zone – $85,800 to $86,500
This zone has been tested multiple times historically.
It was first established in late March/early April as a ceiling for bullish momentum.
The current rally failed twice to break above this zone — a clear sign of buyer exhaustion.
Both Top 1 and Top 2 formed at this level, highlighting it as the neckline of the reversal pattern.
🟢 Support Zone – $78,000 to $79,500
This level served as a base for the previous rally.
Now, it’s being eyed as a bearish target zone.
It’s a confluence area where historical support, Fibonacci retracement levels, and measured move targets align.
📐 2. Chart Pattern – Double Top (Bearish Reversal)
A classic Double Top is forming at the resistance area, which indicates a potential market reversal from bullish to bearish.
Top 1 formed as price surged toward resistance.
After a pullback and recovery, Top 2 failed to break higher — indicating a loss of bullish strength.
The neckline (support between the tops) lies around $83,000, a critical area to watch for the breakout.
📉 3. Price Action Analysis
Volume: Gradually decreasing on the second top — a common confirmation in double top formations.
Candle Structure: Bearish engulfing and pin bars appeared after Top 2, hinting at institutional selling pressure.
Momentum Shift: After Top 2, price starts making lower highs and lower lows, suggesting a transition to a bearish trend.
🛠️ 4. Trading Strategy & Setup
✅ Entry Plan:
Enter short after a confirmed break and retest of the neckline at $83,000.
Conservative traders may wait for a bearish candle close below this level.
🎯 Take-Profit Targets:
TP1: $83,000 – Neckline retest level.
TP2: $80,785 – Derived from the projected height of the Double Top (measured move).
Final Target: $80,811 – Key horizontal support and previous accumulation zone.
🛑 Stop Loss (SL):
Set above $88,297 — above the double top and resistance zone to account for volatility spikes.
This placement provides room while still respecting pattern invalidation.
🧠 5. Market Psychology Insight
A Double Top signals a strong change in sentiment.
After sustained bullish momentum, buyers fail to push beyond resistance — confidence wanes.
Sellers gain control, starting a distribution phase.
Lower highs indicate diminishing bullish effort, and neckline break signals the beginning of trend reversal.
This pattern often appears before larger corrective moves or even trend shifts.
🧮 6. Risk Management & Trade Metrics
Parameter Value
Pattern Type Double Top
Trade Direction Short (Sell)
Entry Below $83,000
Stop Loss Above $88,297
TP1 $83,000
TP2 $80,785
Final Target $80,811
Risk/Reward ~2.5:1 (estimate)
Note: Always use position sizing and risk no more than 1–2% of capital on a single trade.
📌 Conclusion:
This BTC/USD chart reveals a technically sound bearish reversal opportunity. With a confirmed Double Top, clear resistance rejection, and weakening bullish momentum, the setup aligns well for short-term traders. The structure, levels, and price action offer a compelling case to target a move toward the $80,800 zone.
🧾 Chart Summary:
This chart illustrates a high-probability bearish reversal setup in Bitcoin (BTC/USD) on the 3-hour timeframe. Price action suggests a weakening bullish momentum, with a textbook Double Top pattern forming at a key resistance level. This provides a potential opportunity for short sellers to capitalize on the likely retracement toward lower support areas.
📍 1. Key Levels Identified
🔴 Resistance Zone – $85,800 to $86,500
This zone has been tested multiple times historically.
It was first established in late March/early April as a ceiling for bullish momentum.
The current rally failed twice to break above this zone — a clear sign of buyer exhaustion.
Both Top 1 and Top 2 formed at this level, highlighting it as the neckline of the reversal pattern.
🟢 Support Zone – $78,000 to $79,500
This level served as a base for the previous rally.
Now, it’s being eyed as a bearish target zone.
It’s a confluence area where historical support, Fibonacci retracement levels, and measured move targets align.
📐 2. Chart Pattern – Double Top (Bearish Reversal)
A classic Double Top is forming at the resistance area, which indicates a potential market reversal from bullish to bearish.
Top 1 formed as price surged toward resistance.
After a pullback and recovery, Top 2 failed to break higher — indicating a loss of bullish strength.
The neckline (support between the tops) lies around $83,000, a critical area to watch for the breakout.
📉 3. Price Action Analysis
Volume: Gradually decreasing on the second top — a common confirmation in double top formations.
Candle Structure: Bearish engulfing and pin bars appeared after Top 2, hinting at institutional selling pressure.
Momentum Shift: After Top 2, price starts making lower highs and lower lows, suggesting a transition to a bearish trend.
🛠️ 4. Trading Strategy & Setup
✅ Entry Plan:
Enter short after a confirmed break and retest of the neckline at $83,000.
Conservative traders may wait for a bearish candle close below this level.
🎯 Take-Profit Targets:
TP1: $83,000 – Neckline retest level.
TP2: $80,785 – Derived from the projected height of the Double Top (measured move).
Final Target: $80,811 – Key horizontal support and previous accumulation zone.
🛑 Stop Loss (SL):
Set above $88,297 — above the double top and resistance zone to account for volatility spikes.
This placement provides room while still respecting pattern invalidation.
🧠 5. Market Psychology Insight
A Double Top signals a strong change in sentiment.
After sustained bullish momentum, buyers fail to push beyond resistance — confidence wanes.
Sellers gain control, starting a distribution phase.
Lower highs indicate diminishing bullish effort, and neckline break signals the beginning of trend reversal.
This pattern often appears before larger corrective moves or even trend shifts.
🧮 6. Risk Management & Trade Metrics
Parameter Value
Pattern Type Double Top
Trade Direction Short (Sell)
Entry Below $83,000
Stop Loss Above $88,297
TP1 $83,000
TP2 $80,785
Final Target $80,811
Risk/Reward ~2.5:1 (estimate)
Note: Always use position sizing and risk no more than 1–2% of capital on a single trade.
📌 Conclusion:
This BTC/USD chart reveals a technically sound bearish reversal opportunity. With a confirmed Double Top, clear resistance rejection, and weakening bullish momentum, the setup aligns well for short-term traders. The structure, levels, and price action offer a compelling case to target a move toward the $80,800 zone.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.