Bitcoin Double-Top Pattern Points to $44K Target as Mt.Gox BTC Set to Dump

It was a sea of red in the crypto industry as Bitcoin, Toncoin, Dogecoin, and other cryptocurrency prices collapsed.

The price of Bitcoin crashed sharply on Friday, June 23, dragging other major cryptocurrencies like Toncoin, Dogecoin, Shiba Inu, and XRP lower. The sell-off happened as the coin dropped below a key technical level and as several assets that were last received from Mt.Gox were moved to exchanges.

Bitcoin price crashed

After a period of relative calm, the price of Bitcoin crashed sharply this week. BTC dropped from highs of over $58,000 to lows of $54,800, representing a decline of 5%.

At the time of writing, Bitcoin is trading at $55,000, which is substantially lower than its all-time highs of $69,000. Other cryptocurrencies have also crashed, with Toncoin (TON) and Dogecoin (DOGE) dropping by 10% to $6.62 and $0.094, respectively.

Most altcoins, including Solana, Pepe, Cardano, and XRP, also retreated. In total, the cryptocurrency market dropped below the $1.4 trillion mark.

Bitcoin double-top pattern

There are several fundamental and technical reasons why the price of Bitcoin crashed hard this week. Technically, as shown above, this drop happened after the coin formed a giant double-top chart pattern on the daily chart.

The first smaller double-top pattern happened at around $72,200 between March and April while the second happened in June. Their necklines were at $60,884 and $66,573, respectively.

The neckline of the bigger double-top pattern was at $56,525, which the coin has now broken, pointing to more downside. By measuring the size of distance between the double top and the neckline, this sell-off will continue to about $44,000 in the near term. This view will be confirmed if the Bitcoin price drops below the key support at $50,000

The other risky technical thing to watch is that Bitcoin has now crashed below the 200-day moving average. That raises a possibility that the coin will form a death cross, which happens when the two moving averages make a crossover.

Toncoin, Dogecoin, Shiba Inu, and XRP dropped

As shown above, the price action of Bitcoin has a strong impact on other cryptocurrencies. In this case, Toncoin, Dogecoin, Shiba Inu, XRP, and other cryptocurrencies have all dropped because of the ongoing Bitcoin price action.

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