The frequency of Bitcoin failing to break above higher resistance levels has lead to the formation of a “double-top price pattern,” that could potentially lead to a “steeper decline” to $50,000, according to a crypto analyst.

Founder of 10x Research, Markus Thielen, explained in an analyst note on June 24 that Bitcoin (BTC) appears to be following a double-top pattern technically and is currently testing its support level.

A double top pattern forms when the price reaches two similar peaks with a slight dip in between, maintaining support above a common line known as the "neckline." This pattern typically resolves when the price breaks below the neckline, potentially falling by an amount equal to the distance between the peaks and the neckline.

“Bitcoin could shift from its current range trading (60,000-70,000) into a topping formation, potentially leading to a steeper decline.”

“This chart formation should be our base case unless it becomes invalidated. This formation could easily see a drop to $50,000—if not $45,000,” said Thielen, adding, “As we’ve observed over the past three months, range trading is a complex phase, often marked by several false breakouts.”

“Topping formations have historically left the average retail investor vulnerable, with many altcoins experiencing significant drops.”

Thielen added that despite the potential positive impact of the U.S. elections and the Consumer Price Index (CPI) later this year, the price could still experience a “steeper correction.”

Prominent crypto traders are speculating over Bitcoin’s price after the halving event on April 20. This event cut Bitcoin miner block rewards by 50%, from 6.25 BTC to 3.125 BTC.

Crypto trader Jelle said Bitcoin’s price action is still playing out “similarly” after the 2016 halving cycle and is “chopping around the previous cycle highs.”

“More and more fud is being offloaded at current prices,” declared Jelle in a June 24 X post, adding that it is part of “shakeout effects.”

“Either it’s very over, or we’re close to a bottom.”

Crypto trader Rekt Capital believes there’s considerable potential for further upward movement in the short term. In a June 24 post he said, the market is approximately 40% through the “bull market” phase.

That suggests that the latest drop in BTC price below $60,000 gives buyers an opportunity to buy more on the dips before Bitcoin enters a “parabolic uptrend.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.