The analytical platform Swissblock points out that Bitcoin currently resembles 2021, when it formed a bearish “double top.” This time, however, different macroeconomic conditions could help it break through resistance and reach new all-time highs.
Technical signals are warning
According to analysts, last week’s closing price was not ideal and resembles a double top formation. If there is no reversal, there is a risk of distribution and limited room for growth. Bitcoin is facing a decisive week. The week’s close was not ideal, reminiscent of 2021. Without a reversal, there is a risk of distribution and growth being capped, according to Swissblock. The double top formation is a strong bearish technical signal, indicating that the price is unable to break through resistance and that a downward trend reversal may occur.
However, the situation is different from 2021. At that time, a phase of monetary policy tightening, rate hikes, and quantitative tightening (QT) was beginning. Today, in 2025, the market is preparing for rate cuts and quantitative easing (QE).
Warning of a bull trap
Well-known trader Cheds also pointed out the similarity to the 2021 pattern. He claims that Bitcoin is showing a so-called upthrust pattern. This is a situation where the price breaks through resistance but then fails to maintain the level and quickly returns. This signal is often considered a bull trap, which often leads to a trend reversal.
Cheds recalled that the same development occurred in 2021, when the cryptocurrency attempted to break through the $69,000 mark but failed, triggering a deep bear market. Currently, bitcoin is trading around $114,000, which is still below last week’s all-time high.
