Bitcoins price faces the possibility of a double top formation 5 key updates to be aware of in the Bitcoin market this week

Bitcoin is facing a challenging situation as it enters the second week of July, with traders concerned about further price declines. After experiencing its lowest weekly close in four months, Bitcoin is causing anxiety for bull traders as unrealized losses continue to accumulate. The market’s future trajectory remains uncertain, but many traders anticipate lower price levels, potentially even below $50,000. Longtime market participants are closely observing how major players navigate this storm, particularly speculators and Bitcoin holders who are now in a negative position. The recent downtrend can be attributed to selling by the United States and German governments, as well as reimbursements of Bitcoin owed to Mt. Gox exchange creditors. The Crypto Fear and Greed Index reflects the market’s sensitivity to these factors, plummeting 60% over the past month and nearing “extreme fear” levels. As the market uncertainty persists, various experts offer their opinions on how Bitcoin’s price might react. Some believe that more downside is likely, considering Bitcoin’s weekly close below the May low. Traders are closely monitoring the Relative Strength Index (RSI) for signs of oversold conditions. The RSI has pulled back to levels seen in August/September last year, suggesting the possibility of further declines. Veteran trader Peter Brandt even speculates that Bitcoin’s recent all-time high forms a “double top” pattern, with a potential target of $44,000 if the breakdown continues. Meanwhile, a significant portion of Bitcoin investors is currently underwater on their holdings, creating concerns about potential sell-offs. The market is awaiting the release of US Consumer Price Index (CPI) and Producer Price Index (PPI) data for June, as well as testimony from Federal Reserve Chair Jerome Powell. These macroeconomic events will play a crucial role in assessing the overall market sentiment. Despite the recent price decline, the Crypto Fear and Greed Index has retraced its gains from the bull market and now signals “extreme fear.” This sentiment shift is reminiscent of previous market cycles, highlighting the volatile nature of the cryptocurrency market.