Will Bitcoin price crash to $60k as bearish double top coincides with 5-week ETF breakout line?

Bitcoin price has formed a bearish pattern showing a near $60K crash as both institutional and retail confidence continued to erode in the legacy crypto asset.

According to data from crypto.news, the price of Bitcoin (BTC) fell to an intraday low of around $65,700 on Thursday before bouncing back above $67,000 at press time. At this price, it remains 15% below its February high and is down more than 46% below its all-time high.

On the daily chart, the bellwether asset’s price action appears to have formed several bearish patterns.

Notably, the price of Bitcoin is charting a double top pattern, which is one of the most popular bearish patterns in technical analysis. Such formations with two rounded peaks are usually marked with a bottom equal to the height of the peaks from the neck.

Bitcoin price has also formed a bearish pennant pattern, which is seen as an inverted flagpole and is another bearish signal indicating the continuation of the trend.

Convergence of both these bearish patterns at the same time significantly increases the bearish view of the asset in the coming sessions.

In addition to this, Bitcoin price is currently below all important moving averages with a bearish crossover between the 20 and 50 day SMA in play. Meanwhile, the Chaikin Money Flow index also printed a negative reading of -0.06 at press time, suggesting cash flow away from its market, a metric that suggests selling pressure is building across the board.

Therefore, the path of least resistance points to a bearish forecast for Bitcoin, where the bears can try to push the price of the token down to the $ 60,000 mark, a level calculated by subtracting the height of the double peaks formed in the explosion area.

A break below this key psychological support could put Bitcoin on a sharp decline to $50,000.

Market sentiment indicates a heavy bearish overshoot

The bearish narrative gains strength from the fact that sales sentiment has already taken a negative turn.

According to Google Trends data, global searches for “Bitcoin going to zero” have reached a five-year high, hitting a full 100 points on the relative interest scale. This increase in doom scroll interest is similar to levels last seen during the 2022 FTX crash.

At the same time, the Crypto Fear and Greed Index, a metric that traders use to measure the psychology of the market, has remained below 10 for the past three days, setting levels of extreme fear not seen for almost two years.

Traders have rightly positioned themselves with the overall market bias leading bearish, as evidenced by Bitcoin’s long-short ratio sliding below the 1.0 threshold, data from CoinGlass show.

ETF outflows move into fifth week

Meanwhile, Bitcoin ETFs, which have been the main engine driving institutional investment in the space, have also declined. Data from SoSoValue shows that 12 Bitcoin ETFs have recorded persistent outflows, extending what would be the first five-week outflow streak since last March.

These investment vehicles have lost nearly $4 billion over this period. In context, during the last cycle, these ETFs attracted almost 20 billion dollars and fueled the Bitcoin rally to new highs.

However, according to some analysts, a visit to $ 60k may also mark the bottom of the current cycle. This area coincides with the 200-week EMA, which has historically served as a strong support level in previous bear cycles.