Double Top: The Bearish Trap That We Should All Know

When an asset rises, rises, and rises… but suddenly it does a “fake-out” and falls. That, my buddy, could be a double top forming.

What's Up with This Pattern?

In simple terms: the price attempts to break its previous level (first peak), fails in the attempt (second peak), and then collapses. It's as if the market is saying “we're not going higher” twice in a row.

The 4 Acts of the Drama

1. First Ceiling – BTC/ETH rises nicely, reaches a maximum
2. The Correction – Pull back a bit, creating a “neckline” (support level)
3. Second Attempt – Goes up again but does not exceed the first maximum
4. The Fall – Breaks the neckline → pattern confirmation → more falls usually come

What You Can't Ignore

• Neckline: It is your critical level. If it falls below = pattern confirmed
• Volume: It usually decreases during the second peak (the bulls are tired). It increases when it breaks the support (the bears take control).
• Confirmation: It is not a pattern until it breaks the neck line

Disclaimer

This is education, not trading advice. Crypto is volatile and risky. Do your own research (DYOR) before any moves. Assess the market and your financial situation.