The cryptocurrency market experienced a sharp pullback midweek as the Bitcoin price failed to hold above $110,000. This selling pressure has accelerated among the majority of assets as the geopolitical tension in the Middle East escalated over the weekend. Currently, the BTC price shows the formation of a potential bearish pattern amid rising selling pressure among large-scale investors.
Bitcoin Faces Rising Pressure Amid Middle East Conflict
Over the last four days, the Bitcoin price has declined from $110,400 to $105,155, representing a 4.7% loss. While the pullback seems modest, the current market scenario reveals deeper concern.
The broader financial market has taken a sudden hit as the Middle East region witnessed a surge in military action between Israel and Iran. The escalating conflict has triggered a wave of risk-off sentiment among global investors, resulting in a sharp decline across equities, commodities, and cryptocurrencies.
Adding to the bearish pressure is on-chain data showing an early distribution phase by large holders. According to a recent tweet by crypto analyst Ali Martinez, the Bitcoin whales holding over 1,000 BTC have started trimming their positions.
Such actions from high-net-worth investors often precede the broader correction, as observed in previous cycles.
BTC Double Top Pattern Signals Major Downturn Ahead
An analysis of BTC’s daily chart shows two prominent swing highs around the $110,500 level. It appears that the second swing failed to reach the previous high of $112,000, accentuating intense overhead supply pressure and a potential for a bearish reversal.
If the bearish momentum persists, the Bitcoin price could decline 4.38% to reach $106,661, potentially revealing the formation of a double-top pattern.
This chart setup, in the form of an M shape, is commonly spotted at major market tops, leading to a sharp downtrend if completed. Thus, a potential breakdown below the $100,700 neckline would accelerate the selling pressure and push the price another 7.21% to hit the $92,000 floor.
Alternatively, if the buyers manage to hold above $100,700 support, the BTC price trend could shift sideways to recuperate its bullish momentum.
