As BTC slides towards resistance, the chance of a rare triple top formation comes into play – Markets and Prices Bitcoin News

The cryptocurrency economy has plummeted in value over the past six months, falling 48.70% from $3.08 trillion to $1.58 trillion today. While crypto markets are looking extremely bearish these days, some crypto advocates have theorized that the bear market will be less harsh this time. Furthermore, there is also the rare scenario that the price of bitcoin could reverse and hit a triple top, despite the common saying in the financial world that “there is no such thing as a triple top”.

The chances of Bitcoin experiencing a triple top scenario are rare, but could happen

Five days ago, Bitcoin.com News reported on a theory that Bitcoin (BTC) prices are experiencing a softer bear market than the leading crypto-asset’s past 80% declines. The rationale behind the theory lies in previous bitcoin price peaks and the most recent highs recorded in May and November 2021.

While BTC hit $64,000 in May and $69,000 in November, the two highs were much smaller than previous bull gains. By the looks of it, the price of BTC experienced what is known as a double top. Consistent with the theory that the current market downturn will be a smoother bear run, there is also the rare possibility of a triple top scenario.

If a triple top scenario occurs, BTC’s fiat value will basically hit the same resistance it touched during the past downturn. For example, after hitting a high of $64,000 in mid-May 2021, BTC dropped to a low of $31,000 on June 21, 2021. From there, the price surged again, reaching $69,000 on November 10, 2021.

If BTC is to experience a triple top formation, the price should retrace the May and November 2021 highs after hitting resistance.

If a triple top happens to happen, then the upcoming bottom would be somewhere around the $31,000 area if it initiates another reversal. For this to happen, BTC needs to see a full reversal from the same resistance levels, and the third high could be at and just above or just below the $69,000 region.

Reversal theories are considered “hopium” as many do not bet on such a risky game

Of course, many will assume that theories of a triple top are based on pure faith and “hopium.” In the trading world, triple tops are very rare and quad tops don’t seem to exist. In 2019, Allstarcharts.com analyst JC says, “We rarely see triple tops, and I can’t even tell you if I’ve ever seen a quadruple top. Betting on these outcomes never seems to pay off.”

This means that betting on Bitcoin (BTC) experiencing a triple top is a very risky bet compared to betting on a double top formation. Furthermore, it is a common message in the trading world to say:

There is no triple top.

While it is common to say, “there is no triple top,” the comment is not entirely accurate. They have certainly appeared in financial market scenarios in the past and traders who have risked betting on them have reaped the rewards. However, if a Triple Top is executed and completed, the “party is officially over”. When a triple top is executed, the price begins a bearish descent until the next price cycle regains bullish strength.

While many are likely still willing to bet on a triple-top formation as far as Bitcoin’s price is concerned, it is even more likely that they are unwilling to bet on a seemingly non-existent quad-top. Additionally, the fact that triple tops are so rare means that many traders are unwilling to bet that a third top is in sight. The chance that a BTC triple top will materialize is not out of the question, and no one can say for sure that the scenario will not materialize.

tags in this story

All Time Highs, Bitcoin, Bitcoin (BTC), Bitcoin Prices, Lows and Highs, BTC Prices, Charts, Crypto Economy, Cycle, Double Top, Formations, Markets, Moving Averages, Spikes, Price Cycles, Prices, Quad Top, Resistance Levels, Risk , Technical Analysis, Triple Top, Triple Tops rare

What do you think about the chances of bitcoin price seeing a triple top formation after hitting the next level of resistance? Let us know what you think about this topic in the comment section below.

Jamie Redman

Jamie Redman is the news director at Bitcoin.com News and a Florida-based financial technology journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about today’s emerging disruptive protocols.

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