I want to share an observation about a pattern that often works on cryptocurrency charts. It's about the double top — one of the most reliable reversal signals when you know how to read it correctly.

Here's how it works: the price approaches the same level twice but cannot break through it. It looks like two mountains side by side, hence the name. Usually, after the second peak, a decline begins. The second peak is often slightly lower than the first — indicating that the momentum is weakening. This is already a bearish signal.

How do I recognize this in practice? First, I look for two peaks at approximately the same level. Then I draw a line through the lowest point between them — this is the neckline, a key support level. The most important thing is to wait for a breakdown below this line. When the price breaks this support, the double top pattern is confirmed. Trading volume usually increases at this point, which strengthens the signal.

For example, if the price touches $67,000 twice, and the lowest point between the peaks was $65,000, then the target level can be calculated by measuring the distance from the neckline to the peak and projecting it downward from the breakdown point. This results in a decline to around $63,000. It works, but discipline is needed.

When I see a forming double top pattern, I wait for confirmation of the breakdown. Only then do I open a short position. I place a stop-loss above the last peak — this is insurance against a false breakout. And the main rule: never risk more than 1-2% of your deposit on a single trade. I've seen many traders ignore this and later regret it.

By the way, the pattern provides clear entry and exit levels, which is very convenient. After confirmation, the signal is usually reliable. But there’s a catch — false breakouts happen, and the chart can deceive you. Plus, different people may interpret the same chart differently, so subjectivity exists.

Currently, I’m watching BTC, trading at $67.24K with a -0.37% change over the day. BNB is holding at $592.70 with a +0.11%. YFI has fallen 0.92% to $2.43K. It’s interesting to observe how these assets form their patterns.

An important point: technical analysis is just a tool. You can’t ignore fundamental factors. Changes in regulation, technological news, overall market sentiment — all of these influence the price. The double top pattern works best when it aligns with these fundamental signals.

If you learn to read charts carefully and don’t rush into entries, you can earn quite well from reversals. The main thing is patience and proper risk management.