-
Back to menu
Prices
-
Back to menu
-
Back to menu
Indices -
Back to menu
Research
-
Back to menu
Events -
Back to menu
Sponsored
-
Back to menu
Videos -
Back to menu
-
Back to menu
-
Back to menu
Webinars
Select Language
By Omkar Godbole, AI Boost|Edited by Parikshit Mishra
Aug 12, 2025, 7:30 a.m.
- Bitcoin’s rally has stalled, forming a potentially bearish double top pattern.
- A failure to sustain gains above $122,000 suggests buyer exhaustion ahead of the U.S. CPI release.
- A confirmed double top breakdown could lead to a sell-off, with a potential for a drop to $100,000.
This is a daily analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
The bitcoin
rally has stalled, raising the possibility of a potentially bearish technical formation: a double top.
STORY CONTINUES BELOW
A close examination of the daily chart reveals that bulls failed to sustain a rally above the key Fibonacci level of $122,056 on Monday, a performance that precisely mirrors a similar rejection on July 14, according to data source TradingView.
This dual failure to establish a foothold above the key price point, separated by a brief pullback, is a hallmark of the double top pattern. The neckline of this pattern, drawn from the low of $111,982 reached during the brief pullback, is the key level to watch on the downside.
A decisive move below that level would confirm the double top breakdown, potentially opening the door for a sell-off to $100,000. That level is arrived at by subtracting the gap between the twin peaks and the neckline from the neckline level in what’s known as the measured move method of calculating targets.
Early this year, BTC double-topped near $100,000, eventually falling to lows under $75,000 in early April. The double top comprises two peaks separated by a trough and takes roughly two to six weeks to form. The gap between the two peaks must be equal to or less than 5%, with the spread between peaks and the trough being at least 10%, according to technical analysis theory.
These, however, are guidelines and not rules, meaning the backdrop is more important – the pattern should appear after a prolonged uptrend to be valid, which is the case with BTC.
- Resistance: $120,000, $122,056, $123,181.
- Support: $114,295 (the 50-day SMA), $111,982, $100,000.
The dual failure of Bitcoin bulls to sustain gains above $122,000 indicates a clear case of buyer exhaustion, giving bears a significant upper hand as the market heads into today’s CPI release.
This exhaustion of buying pressure means the market is now particularly vulnerable to a hotter-than-expected U.S. inflation report due Tuesday. In other words, the buying momentum is not strong enough to absorb the potential selling pressure triggered by an elevated CPI and the resulting drop in the Fed rate cut bets. In this scenario, the market could experience a rapid decline.
Read more: Bitcoin $115K Bets In Demand as Downside Fear Grips Market Ahead of U.S. CPI Report
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
Omkar Godbole is a Co-Managing Editor and analyst on CoinDesk’s Markets team. He has been covering crypto options and futures, as well as macro and cross-asset activity, since 2019, leveraging his prior experience in directional and non-directional derivative strategies at brokerage firms. His extensive background also encompasses the FX markets, having served as a fundamental analyst at currency and commodities desks for Mumbai-based brokerages and FXStreet. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
Omkar holds a Master’s degree in Finance and a Chartered Market Technician (CMT) designation.
“AI Boost” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy.
More For You
By Omkar Godbole|Edited by Parikshit Mishra
2 hours ago
A higher-than-expected CPI could dampen Fed rate cut bets and weigh on risk assets, including bitcoin.
What to know:
- Bitcoin traders are seeking protection against potential losses ahead of U.S. inflation data, which may show the impact of trade tariffs on consumer prices.
- The consumer price index is expected to rise to 2.8% year-on-year in July, with a monthly increase of 0.2%.
- A higher-than-expected CPI could dampen Fed rate cut bets and weigh on risk assets, including bitcoin.
