The cryptocurrency economy has lost a lot of value in the past six months, dropping 48.70% from $3.08 trillion to $1.58 trillion today. While the crypto markets look extremely bearish these days, a few crypto advocates have speculated that the bear market will be less harsh this time around. Additionally, there is also the rare scenario that bitcoin price could reverse and see a triple top even though it is commonly said in the world of finance “there is no such thing as a triple top”.
Chances of Bitcoin experiencing a triple top scenario are rare, but could happen
Five days ago, Bitcoin.com News reported on a theory describing bitcoin (BTC) prices experiencing a milder bear market than the major crypto asset’s past 80%+ declines. the reasoning behind the theory is due to past peaks in bitcoin prices and the most recent peaks recorded in May and November 2021.
While BTC reached $64,000 in May and $69,000 in November, both peaks were much lower than previous bullish gains. From the looks of things, it looks like the price of BTC has experienced what is called a double top. Now, coinciding with the theory that the current market downturn will be a softer bear run, there is also the rare possibility of a triple top scenario.
Basically, if a triple top scenario occurs, the fiat value of BTC will touch the same resistance it touched during the last downturn. For example, after BTC hit a high of $64,000 in mid-May 2021, the value fell to a low of $31,000 on June 21, 2021. From there, the price skyrocketed again and reached $69,000 on November 10, 2021.
If a triple top occurs, the next low will be somewhere in the $31,000 range, when it begins another reversal. For that to happen, BTC will need to see a full reversal of the same resistance levels and the third high could be at and just above or just below the $69,000 region.
Reversal theories considered “Hopium” because many won’t bet on such a risky game
Of course, many will assume that triple summit theories are based on pure faith and “hopium.” In the world of trading, triple tops are very rare and quad tops are seemingly non-existent. In 2019, JC, an analyst at allstarcharts.com, said, “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.
Which means betting on bitcoin (BTC) experiencing a triple top is a very risky bet compared to betting on a double top formation. Moreover, it is a common message in the world of trading State:
There is no triple top.
Although it is common to say the statement, saying “there is no triple peak”, the comment is not entirely accurate. They have surely occurred in financial market scenarios in the past, and traders who have risked betting on them have reaped the rewards. However, when a triple top runs and ends, 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 when it comes to the price of bitcoin, they are even more likely to be unwilling to bet on a seemingly non-existent quad top. Also, with triple tops being as rare as they are, many traders aren’t willing to bet that a third top is in the cards. The chance of a BTC triple top materializing 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 bitcoin price seeing a triple top formation after hitting the next resistance level? Let us know what you think about this topic in the comments section below.
