BTC to GBP Exchange Rate Forms Double Top Hinting That the Rally Could Soon Be Over

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The BTC to GBP exchange rate has enjoyed a strong rally for the past few days. However, the hourly time frame shows that the cryptocurrency could be losing steam. On the 1-hour chart, a double top chart pattern has become apparent. This is characterized by a market getting rejected at a resistance level twice. For BTCGBP, that price is 6,072.91. This chart pattern is considered as a bearish reversal indicator. A break below the neckline support at 5,094.60 could mean that the BTC to GBP exchange rate is lower. Near-term support is at 5,796.00.

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On the 4-hour time frame, it can be seen that this price coincides with the rising trend line (from connecting the lows of March 30, April 1, and April 5). It also aligns with the previous highs established last week. Reversal candles at the rising trend line would mean that the uptrend on BTCGBP is still intact. On the other hand, a trend line break could mean a sell-off to 5,415.00 where the 100 SMA and 200 SMA coincide.

Alternatively, it’s worth pointing out that the recent price action on the BTC to GBP exchange has allowed a bullish flag chart pattern to form. This is considered as a bullish continuation indicator and that a close above the recent highs at 6,090.00 could mean a bigger rally. The next resistance level for BTCGBP could be at 7,024.00.

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