Bitcoin rejects the test of its all-time highs, is a double top in the making?

This weekend saw some explosive buying in digital assets, propulsed by Ethereum breaking above its previous highs.

After touching $4,000, a cascade of Saturday buying took the second largest crypto to $4,350 highs.

Ether is now consolidating around the $4,200 key handle – A consolidation at its highs is a more bullish sign, however for the Crypto Market to run higher, Participants will now look at the leading Crypto.

Bitcoin actually caught up to the ETH rally on Sunday evening and in a swift rally, touched $122,310, $900 shy of its all-time high record.

The failure to breach new highs has brought some profit taking, prompting a BTC analysis to see if this top has the potential to be a longer-term top or if there is still the potential for new all-time highs.

Cryptocurrencies have been getting a boost from growing doubts on the US Economy amid the imposition of the infamous Trump tariffs, and getting further support from accommodative US crypto policies.

Read More: The US Dollar finds support ahead of US CPI

Some relatively strong profit taking is happening on altcoins but this doesn't seem to be as strong of a correction for Bitcoin and ETH which have been outshining their competitors.

As long as both ETH and BTC hold their current highs, the market shouldn't show any signs of concerns – but the relative strength of both relative to minor coins could be an interesting study for the upcoming cycle.

Looking at the daily picture, we see the Bitcoin establishing a range in the $113,000 to $120,000 range – Ranges close to the al-time highs are typically good signs for prolonged upward action.

However, today and tomorrow's daily candles will provide huge technical information on if a double top will emerge or not after the overnight session's higher wick.

As long as the lower bound of the range holds (further supported by the 110,000 to $112,00 support zone), Bitcoin still has a chance to mark new cycle all-time highs.

Looking closer, we see the most recent highs acting as a potential break-retest of the July upwards trendline.

Rejecting below the $115,000 Support would confirm a break-retest which would point towards the beginning of a worst-case scenario for Bitcoin as this would come with a failed double top and would indicate that buyers haven't had enough strength to even retest the previous ATH.

This scenario is for now still a bit far, therefore the rest is to see if Bitcoin holds around the 119,000 to 120,000 Pivot zone – Consolidating here gives it more chance to retest the ATH and potentially break higher

Key levels of interest for Bitcoin:

Resistance levels:

• All-time Highs to break 123,150
• Most recent highs 122,300
• Major Resistance 121,000 to 122,000
• 126,500 to 128,000 Potential Resistance

Support levels:

• Immediate Pivot Between $115 ,000 to $116,500 (Confluence with 4H MA 50)
• $113,000 Mini Support and weekend lows
• Major Support Zone previous ATH 110,000 to 112,000

The action is still very balanced in the 1H Chart – 

We spot more details of this morning's selloff rejecting the July upward trendline on a break-retest technical pattern, but with the 1H RSI back to neutral, it will be essential to see where players take the prices.

Tomorrow's US CPI will have sure implications for the upcoming price action and participants may no want to move their pawns too much before.

In the meantime, a cup and handle pattern is in the development. If buyers do trade on this technical setup, a measured-move rule of this pattern would point to $125,500 prices.

Tomorrow will be the key to the future price action.

Safe Trades!