After hitting On the weekend, we saw a 10% bounce at the Bitcoin price and recovered at a minimum of less than $100,000. Again, $106,000. This was a welcome development as it provided some relief to Altcoins. However, this move appears to be short-lived only with the appearance of double-top and fair value gap (FVG) that are about to be satisfied near weekend lows.
Bitcoin completes liquidity sweep to form a double top
After Bitcoin’s price exceeded $106,000, Crypto analyst Louigi noted that digital assets could have formed a double top. This is bearish for cryptocurrency. This is because the market has decided on a new direction, and the liquidity of the buyers is not complete.
Following the turn of direction, there were signs of buyer fatigue as the price stopped first. This suggests a decline in bullish momentum, which began at $106,600 as an important area of resistance, with rejection expected.
After a sudden move, Crypto analysts said Bitcoin left a gap between buyers and sellers. This is usually referred to as the fair value gap (FVG). These are areas where prices tend to return to balance, and are often filled with rapid succession.
In this case, there are multiple fair value gaps, heading towards $102,000. According to analysts, the first is the area below the $105,000 level, at the 0.28 Fibonacci retracement level, the first line of the reaction. Ruigi explains that the decline to this level will shift towards the second gap below $104,000 at the 0.5-0.618 FIB level.
Last but not least, the lineup has a $102,000 0.618-0.65 FIB level, which is an important junction for Bitcoin. If this level is not maintained, a retracement to the 0.786 FIB level is more likely, which is slightly above the $101,000 price range.
Why this paper is invalid?
According to analysts at Crypto, Bitcoin was at its peak at the time as it formed a double top at $106,600. But Bitcoin could surge beyond that point, even reaching $108,000 before going back down and being rejected.
A price recovery could suggest that FVG may remain unfilled as a Bitcoin campaign of under $106,000, the best Bitcoin campaign of all time. With a new history-high of less than 10%, the Bulls could control the third quarter of this year.
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