A recent large sell order in the Bitcoin (CRYPTO: BTC) market has raised concerns among traders, with veteran analyst Peter Brandt highlighting its significance as a supply-driven event that could signal a market top.
What Happened: Brandt noted on X that Bitcoin needs to exceed $117,570 to negate the formation of a seven-week double top pattern, a technical structure often associated with bearish reversals.
"Tops in markets are created by SUPPLY or DISTRIBUTION," Brandt stated, emphasizing the impact of the sell order while clarifying he remains neutral on Bitcoin's overall outlook.
The double top pattern, observed over the past seven weeks, suggests Bitcoin's failure to break through key resistance levels, potentially indicating a loss of bullish momentum.
If Bitcoin fails to surpass $117,570, analysts warn it could confirm the bearish pattern, leading to a possible price correction.
Recent market dynamics, including profit-taking by long-term holders, align with this cautious outlook, as noted in a CryptoQuant analysis.
Also Read: Stablecoins Could Grow To $34 Trillion Market, Arthur Hayes Says
Why It Matters: Despite technical concerns, Bitcoin's integration into the global financial system continues to grow.
In a note sent to Benzinga, Dom Harz, co-founder of Build on Bitcoin (BOB), highlighted that Bitcoin exchange-traded funds (ETFs) saw $33.6 billion in inflows during Q2, reflecting its shift from a fringe asset to a mainstay in institutional portfolios.
"It is now deeply embedded in the global financial system, actively allocated and recommended by leading institutions," Harz said.
Harz also emphasized Bitcoin's evolving role beyond a store of value.
"The next phase is about everyday utility: everything from enabling everyday transactions and payments, to borrowing stablecoins and other currencies against Bitcoin," he explained.
He warned that without this shift toward practical utility, Bitcoin risks becoming irrelevant, underscoring the importance of its development as financial infrastructure.
Market sentiment remains mixed, with some analysts dismissing fears of a double top.
Swissblock Technologies recently argued that Bitcoin's price strength remains intact, with on-chain indicators showing no bearish divergence.
However, others, like Jacob King of WhaleWire, point to historical double top patterns in 2017, 2019, and 2021 that preceded significant corrections, fueling concerns of a potential downturn.
A decisive move above $117,570 could signal renewed bullish momentum, with some analysts eyeing targets as high as $125,000.
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