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The cryptocurrency economy has lost 48.70% in value over the past six months, from $3.08 trillion to $1.58 trillion today. While the crypto market looks very pessimistic these days, some crypto advocates believe that this bear market will be less severe. Also, there is a rare situation where the price of Bitcoin could reverse and see a triple top, although the financial world usually says “there is no triple top.”
Chances of Bitcoin Going Through a Triple Top Scenario Are Rare, But Could Happen
Five days ago, Bitcoin.com News reported on a theory that describes Bitcoin (BTC) price experiencing a bear market that is even weaker than the 80%-plus drop in the leading crypto asset in the past.this reasoning The reasoning behind this theory is that past Bitcoin price peaks and the most recent peaks were recorded in May and November 2021.
While BTC hit $64,000 in May and $69,000 in November, those two peaks were well below the gains of the previous bull run. On the surface, the price of BTC experienced a so-called double top. Now, in line with the theory that the current market downturn will be a softer bear market, a triple top scenario is also very unlikely.
Basically, if a triple top scenario occurs, BTC’s fiat value will hit the same resistance it has hit in past downturns. For example, after BTC hit a high of $64,000 in mid-May 2021, its value fell to a low of $31,000 on June 21, 2021. Since then, the price has surged again and reached $69,000 on November 10, 2021.
If a triple top happens to occur, the imminent bottom will be in the range of the $31,000 mark when it starts another reversal. For this to happen, BTC would have to fully reverse from the same resistance level, with a third top likely to be at or just above or just below the $69,000 area.
The reversal theory is considered “Hopium” because many people wouldn’t bet on such a risky game
Of course, many would argue that the triple top theory is based on sheer belief and “Hopem. In the trading world, triple tops are very rare, and quadruples don’t seem to exist. In 2019, allstarcharts.com analyst JC said: “We rarely see triple tops, and I can’t even tell you if I’ve seen a quadruple top.” Heavy top. Betting on these outcomes never seems to pay off. “
This means that betting on Bitcoin (BTC) going through a triple top is a very risky bet compared to betting on a double top pattern.Furthermore, it has a common message in the trading world that state:
There is no such thing as a triple top.
While it’s common to say “there’s no such thing as a triple top,” this comment isn’t entirely accurate. They must have happened in past financial market scenarios, and traders who risked betting on them have paid off. However, when the triple top did execute and was completed, “the party was officially over”. When a triple top is executed, the price will start a bearish decline until the next price cycle regains bullish strength.
While many may still be willing to bet on a triple top in terms of Bitcoin’s price, they are more likely to be reluctant to bet on a seemingly non-existent quadruple top. Furthermore, triple tops are so rare, which means that a large number of traders are reluctant to bet that a third top is just around the corner. The chances of a BTC triple top materializing are not impossible, and no one can say for sure that this scenario will not play out.
What do you think about the possibility of Bitcoin price forming a triple top after hitting the next resistance level? Let us know what you think about this topic in the comments section below.
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