The rounded top formation on BTC/USDT 4hr chart is showing the potential end of a previous uptrend.
- Showing that it has already reached the maximum price. (01 Feb.)
- And that the possibilities are now in favour of a downward price movement. (02 Feb.)
In technical analysis, the rounded top is a negative chart pattern. When a chart develops a top, which occurs when price curves rise and then fall in price, it generates this pattern. The right side of the curve will make higher highs on the left side until the top price arrives (1st February), at which point the curve will fall to the downside, making lower price highs on the right side of the top.
- Showing that it has already reached the maximum price. (01 Feb.)
- And that the possibilities are now in favour of a downward price movement. (02 Feb.)
In technical analysis, the rounded top is a negative chart pattern. When a chart develops a top, which occurs when price curves rise and then fall in price, it generates this pattern. The right side of the curve will make higher highs on the left side until the top price arrives (1st February), at which point the curve will fall to the downside, making lower price highs on the right side of the top.