Bitcoin Surges 5% But Faces 15% Correction Risk

Bitcoin's price experienced significant volatility over the past week, hitting a six-month low on April 9. The cryptocurrency showed resilience, recovering above the $80,000 mark after the United States President paused trade tariffs on all countries except China. By the late hours of Friday, Bitcoin had surged back above $83,000, indicating a strong start to the weekend. However, a prominent crypto analyst has identified a pattern that suggests the price of Bitcoin could be at risk of another correction.

Crypto analyst Ali Martinez shared an outlook on Bitcoin's price following its recent recovery rally. According to Martinez, the latest surge could be a precursor to another Bitcoin price correction to around the $74,000 level. This bearish prediction is based on the potential formation of the “double top” pattern on the BTC hourly chart. The Double Top pattern is a technical analysis formation that looks like the letter “M,” consisting of two consecutive price tops. This pattern is typically rare and indicates that investors are looking to book their profits from an extended bullish trend, signaling trader exhaustion and a potential bearish reversal.

The chart shows that Bitcoin's price just completed a “double bottom” pattern on the hourly timeframe, which saw the premier cryptocurrency fall from above $83,000 to around $74,000 in just two days. With the price of BTC seemingly topping out around the $84,000 mark, a potential “M” pattern appears to be forming on the hourly chart. If the Bitcoin price fails to break the resistance around the $84,000, the market leader could be gearing for another price breakdown. It is worth watching out for the support cushion around the $78,000 level, where the BTC price last bounced back to above $83,000. However, a confirmed close below this support region could imply a deeper correction toward $74,000 — a nearly 15% drop from the current price point.

As of the latest update, the price of Bitcoin stands at around $83,800, reflecting an over 5% price jump in the past 24 hours. The formation of the double top pattern suggests that Bitcoin's price could be at a critical juncture, with the potential for a significant correction if it fails to break through the $84,000 resistance level. Investors and traders should closely monitor the support levels and the overall market sentiment to navigate the potential volatility in the coming weeks.