Bitcoin Struggles at Key Resistance: Is a Bearish Reversal on the Horizon?

Bitcoin’s (BTC) price recovery is facing strong resistance, with a potential double top pattern forming—raising concerns about a possible trend reversal.

BTC recently hit a high of $87,400 before pulling back to $84,000. It then attempted another rally past $87,000 but failed to break higher, forming two nearly identical peaks with a dip in between. This setup resembles a classic double top, a bearish technical formation that often signals the exhaustion of an uptrend.

For this pattern to confirm, Bitcoin would need to fall decisively below the “neckline” support level, which currently sits around $86,000. If this breakdown occurs, BTC could decline toward the $75,000 range or lower in the short term. Despite this, the long-term trend remains within an overall upward structure.

Traders had initially reacted positively to the Federal Reserve’s softer stance on inflation and easing concerns about U.S. trade tariffs, which helped drive last week’s gains. However, the lack of strong altcoin participation in Bitcoin’s recent rally suggests weaker overall market confidence, raising the possibility of a “fakeout” before a larger move.

If Bitcoin turns lower, major altcoins could follow suit. Dogecoin (DOGE), known for its volatility and reliance on market sentiment, could experience sharp losses. XRP, which remains highly reactive to broader market movements and regulatory updates, might struggle to maintain momentum.

Solana (SOL) is also at a critical technical juncture. The asset is nearing a potential “death cross” formation—where the 50-day moving average drops below the 200-day moving average—which has historically signaled deeper corrections.

For now, Bitcoin remains in a crucial price zone. A weekly close below $84,000 could validate the double top pattern and strengthen bearish pressure, while a breakout above $87,500 may invalidate it and reignite bullish sentiment.