Sygnum's Tischhauser Cautions on Bitcoin's Double Top but Sees No Major Crash Without Black Swan Event

In Brief:

Bitcoin's double top formation signals caution, but a major crash like 2022's FTX collapse seems unlikely.

The current bull run is driven by institutional flows, which Tischhauser believes will support BTC's price.

Katalin Tischhauser, Head of Investment Research at Sygnum Bank, has raised concerns about Bitcoin’s technical pattern, citing a potential double top near $110,000. This could signal a price reversal, but Tischhauser believes a massive crash like 2022's FTX collapse requires a significant catalyst, such as a black swan event.

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Bitcoin has spent the past 50 days fluctuating between $100,000 and $110,000, which some analysts fear could trigger a downturn to $27,000. However, Tischhauser points to the ongoing institutional adoption of Bitcoin, particularly through exchange-traded funds (ETFs) and corporate treasury purchases, as key drivers of this cycle. The institutional capital flowing into Bitcoin is more resilient than prior bull runs and provides lasting price support.

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Additionally, Tischhauser notes that the typical halving cycle may no longer be relevant, as institutional demand now plays a more significant role in BTC’s price action.

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