The cryptocurrency economy has lost a lot of value over the past six months, dropping by 48.70% from $3.08 trillion to $1.58 trillion today. While the cryptocurrency markets are looking very bearish these days, a few crypto advocates have assumed that the bear market will be less severe this time around. Moreover, there is also a rare scenario where Bitcoin price could reverse and witness a triple top even though it is usually said in the financial world that “there is no such thing as a triple top”.
Chances of Bitcoin experiencing a triple top scenario are rare, but it could happen
Five days ago, Bitcoin.com News reported a theory describing Bitcoin (BTC) prices experiencing a softer bear market than the 80%+ declines of the leading crypto assets recorded in the past. The Logic Behind the theory is because of the previous bitcoin price peaks and the most recent peaks recorded in May and November 2021.
While BTC reached $64K in May and $69K in November, the two peaks were much smaller than the previous bullish gains. From the looks of things, BTC price has seen what is called a double top. Now, in conjunction with the theory that the current market pullback will be a softer one, there is also a rare possibility of a triple top scenario.
Basically, if the triple top scenario happens, the obligatory value of BTC will exploit the same resistance it touched during the last downturn. For example, after BTC reached a high of $64K in mid-May 2021, the value dropped to $31,000 on June 21, 2021. From there, the price surged again and reached $69K on November 10, 2021.
In the event of a triple top, the next bottom will be somewhat in the $31,000 range, when another reversal begins. In order for this to happen, Bitcoin will have to see a complete reversal from the same resistance levels and a third top could be equal to, slightly above or just below the $69K region.
Reversal theories were considered “hypome” because many would not bet on such a risky play.
Of course, many will assume that the Triple Summit theories are based on pure faith and “Hypium. In the trading world, triple tops are very rare and quadruplets seem to be non-existent. 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 before. It looks like betting on these results will never pay off.”
Which means that betting on Bitcoin (BTC) facing a triple top is a very risky bet compared to betting on a double top. Moreover, it is a common message in the world of commerce to Country:
There is no such thing as a triple top.
While it’s common to say the statement, “there is no such thing as a triple top,” the comment isn’t entirely accurate. It has certainly happened in financial market scenarios in the past, and the traders who took the risk to bet on it reap the rewards. However, when the triple top is done and completed, the “party is officially over”. On executing a triple top, the price will start a bearish trend until the next price cycle regains its upward strength.
While many are still probably willing to bet on a triple top formation in relation to the bitcoin price, they are most likely not willing to bet on a seemingly non-existent quadruple top. Moreover, triple tops being rare as they are, it means that a large number of traders are not willing to bet on a third peak in the cards. The chance of the BTC triple top coming to fruition is not impossible, and no one can safely say that the scenario will not come into play.
What do you think about the chances of seeing bitcoin price forming a triple top after reaching the next resistance level? Tell us what you think about it in the comments section below.
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