Bitcoin's Double Top Fears: Hayes Predicts $70K Crash, $250K Surge

Bitcoin's Price Action Raises Concerns of a Potential Double Top

Bitcoin's recent price movements have sparked concerns among analysts that the cryptocurrency may be forming a "double top" pattern, which could lead to a significant price correction. Former BitMEX CEO Arthur Hayes has predicted that Bitcoin could collapse to the $70,000 level due to a potential "mini financial crisis" in the U.S. However, he remains bullish on the long-term prospects of the leading cryptocurrency, forecasting a potential surge to the $250,000 level by the end of the year.

Earlier today, Bitcoin crashed to an intraday low of $98,440, nosediving by nearly 7% over the past 24 hours. This coincided with a severe rout in major chip stocks during pre-market trading, with E-mini Nasdaq-100 Futures down 2.62% according to the latest data. The market turmoil came after the Chinese artificial intelligence (AI) startup DeepSeek released a new large language model called DeepSeek-R1, which outperformed some popular models, including OpenAI's o1, on key benchmarks despite spending only $6 million on training the model.

Crypto trader Rekt Capital has noted that Bitcoin tends to shake traders out with false breakdowns before resuming its upward ascent. According to the analyst, the crypto king's swings to the downside often test the conviction of holders, with failed breakdowns used to lure traders into giving up their coins before kicking off the next leg up. Rekt Capital also highlighted that if Bitcoin finds a weekly close above a key level, it could rip to a new all-time high.