Double Top or… Bearish Dragon?Hello, Traders!
An anatomy of market psychology on the BTC chart…
Sometimes it’s not about what’s next, but what we've already lived through. And this stretch on the Bitcoin (BTC) weekly chart (2021–2022) deserves a second look. What first appears to be a textbook Double Top might, with the right lens, reveal something more… mythical. Let’s break it down 👇
🔍 Double Top: The Obvious Story?
If you zoom in on BTC’s two major peaks — around $64K in April 2021 and $69K in November 2021 — it checks all the boxes: two high points, a clear support line around $30–32K (neckline), and eventually a breakdown that confirmed the pattern. Classic reversal, right? Yes — until you realize it wasn’t just flat repetition, but a structure with more texture and rhythm. This is where the concept of the bearish dragon pattern comes in.
🐉 The Bearish Dragon Trading Pattern
While not part of traditional TA textbooks, the dragon pattern trading model has gained popularity for its ability to capture more nuanced market psychology. In the bearish dragon trading pattern, we get:
Head → The First Push Upward (early 2021)
Left Foot → The First Top
Hump → A Sharp Correction that Builds Tension
Right Foot → A Second, Higher Top (bait for breakout traders)
Entry → The Moment Price Loses Trendline Support
Tail → The Dramatic Drop That Completes the Structure
In this example, BTC followed that script frighteningly well. And while this wasn’t a bullish dragon pattern trading setup (the bullish version mirrors this shape), it still serves as a valuable case study in how these visual patterns capture trader behavior in real time.
⚙️ So What?
Identifying a dragon trading pattern isn't just for artistic flair. These kinds of models reflect moments of emotional whiplash: fake-outs, fear, FOMO — all in one motion. This chart is a masterclass in how structure, sentiment, and supply zones align. And guess what? Even though this pattern completed long ago, some of the zones still matter today — as support, as resistance. Price memory is real. And dragons? Well, they leave footprints. ;)
⚙️ So What?
Identifying a dragon trading pattern isn't just for artistic flair. These kinds of models reflect moments of emotional whiplash: fake-outs, fear, FOMO — all in one motion. This chart is a masterclass in how structure, sentiment, and supply zones align. And guess what? Even though this pattern completed long ago, some of the zones still matter today — as support, as resistance. Price memory is real. And dragons? Well, they leave footprints. ;)
📉 The Classic: Is It Just a Double Top?
Let’s start with the obvious interpretation. What we see on the BTC chart between April and November 2021 checks almost every box of the well-known Double Top — one of the most cited reversal patterns in technical analysis. It’s the kind of formation you’ll find in every trading textbook: two peaks at roughly the same level, separated by a mid-point correction (the "valley"), followed by a breakdown. And in theory, here’s how it plays out.
The first peak, in this case, around $64,000 in April 2021 shows strength, momentum, and enthusiasm. Then comes a pullback which, at first, looks like a healthy correction. Price drops to around $30,000, consolidates, and many consider it a buying opportunity. The second peak, in November 2021, climbs even slightly higher to around $69,000, but this is where things start to feel different. Momentum is weaker. Volume thins out. Retail interest is still there, but it’s more cautious. The hype feels forced.
And then the real turning point. The market loses its footing around $30–32K. That level, which previously acted as strong support, gets broken in early 2022. Not just tested, broken cleanly.
From a purely technical standpoint, that’s the moment the pattern is confirmed. A classic neckline break and with it, the implication that the uptrend is over, and a deeper reversal is underway. In traditional TA, this would be the textbook entry for a short trade, with a target roughly equal to the height from the peaks to the neckline. For BTC, that implied a drop well into the teens. And that’s exactly what happened.
So is this just a clean Double Top and nothing more? Maybe. The pattern fits. The breakdown was real. The projection played out.
What Do You See?
Yeah, this move is behind us, but sometimes it's worth going back to the dragons of the past. Do you see a clean Double Top here or a full-blown Bearish Dragon ready to bite? 🐲 And have you ever used the dragon pattern trading or dragon trading pattern concept in your analysis? Let’s talk patterns in the comments 👇
