After several days fluctuating around the support level of 105,000 dollars, Bitcoin seems to be under pressure from sellers and the take profit activities of traders. The last 24 hours have been marked by Bitcoin losing the price of 105,000 dollars, plummeting until it bounced back at a lower support level around 101,000 dollars.
However, the technical analysis of Bitcoin's daily candlestick chart shows that this price level is increasingly under threat and is currently forming a pattern that could cause the price to plummet to $96,000.
The Bitcoin head and shoulders pattern is forming.
Cryptocurrency analyst Titan of Crypto has highlighted a textbook head and shoulders pattern on the daily chart. According to the analyst, this bearish pattern, if completed, would imply a plummet to the price range of $96,000.
This setup is clearly defined by a peak (head) around mid-May surrounded by two lower peaks (shoulders) on either side, all of which are positioned on the sloping neckline that currently serves as the final support line. As of now, Bitcoin is trading just above this neckline, testing its structural integrity.
In technical analysis, a clear break below the neckline accompanied by high volume often triggers a measured move from the head to the neckline, which is forecasted to head downward. Based on the chart, that decline directly targets $96,054. This puts Bitcoin at risk of a nearly 8% drop from the current level, with little support in between.
In addition to this formation, Bitcoin's daily RSI is currently at 50, which is a level that often triggers a reaction. Therefore, a drop below this midline will confirm a shift towards bearishness.
The price action of Bitcoin closed in a bearish mode.
If Bitcoin plummets to the support level of $96,000, it will mark the beginning of the bullish strength that dominated its price just two weeks ago when it recorded a new all-time high of $111,814. However, since then, Bitcoin has lost the subsequent support levels at $110,000, $107,000, and $105,000, currently placing the next important zone at $103,000. If Bitcoin cannot hold above that threshold, the pressure may shift to $101,000, which could serve as the final buffer before a further decline.
Interestingly, the neckline of the inverse head and shoulders pattern highlighted by cryptocurrency analyst Titan of Crypto is around the price level of $103,500. Bitcoin has broken below this price level in the past 24 hours, but the buyers have managed to prevent further losses below $101,700. This has led to the creation of lower lows on the daily timeframe.
At the time of writing, Bitcoin is trading at $103,250, which means it is revisiting the neckline resistance from below. Its reaction here will determine whether it will eventually drop down to the support level of $96,000. If sellers gain control at this level, it will not only confirm the head and shoulders breakdown but could also lead to a short-term capitulation in other cryptocurrencies.
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Bitcoin Faces the Risk of Breaking the Head and Shoulders Pattern: The $96,000 Level May Be Ahead
After several days fluctuating around the support level of 105,000 dollars, Bitcoin seems to be under pressure from sellers and the take profit activities of traders. The last 24 hours have been marked by Bitcoin losing the price of 105,000 dollars, plummeting until it bounced back at a lower support level around 101,000 dollars. However, the technical analysis of Bitcoin's daily candlestick chart shows that this price level is increasingly under threat and is currently forming a pattern that could cause the price to plummet to $96,000. The Bitcoin head and shoulders pattern is forming. Cryptocurrency analyst Titan of Crypto has highlighted a textbook head and shoulders pattern on the daily chart. According to the analyst, this bearish pattern, if completed, would imply a plummet to the price range of $96,000. This setup is clearly defined by a peak (head) around mid-May surrounded by two lower peaks (shoulders) on either side, all of which are positioned on the sloping neckline that currently serves as the final support line. As of now, Bitcoin is trading just above this neckline, testing its structural integrity.
In technical analysis, a clear break below the neckline accompanied by high volume often triggers a measured move from the head to the neckline, which is forecasted to head downward. Based on the chart, that decline directly targets $96,054. This puts Bitcoin at risk of a nearly 8% drop from the current level, with little support in between. In addition to this formation, Bitcoin's daily RSI is currently at 50, which is a level that often triggers a reaction. Therefore, a drop below this midline will confirm a shift towards bearishness. The price action of Bitcoin closed in a bearish mode. If Bitcoin plummets to the support level of $96,000, it will mark the beginning of the bullish strength that dominated its price just two weeks ago when it recorded a new all-time high of $111,814. However, since then, Bitcoin has lost the subsequent support levels at $110,000, $107,000, and $105,000, currently placing the next important zone at $103,000. If Bitcoin cannot hold above that threshold, the pressure may shift to $101,000, which could serve as the final buffer before a further decline. Interestingly, the neckline of the inverse head and shoulders pattern highlighted by cryptocurrency analyst Titan of Crypto is around the price level of $103,500. Bitcoin has broken below this price level in the past 24 hours, but the buyers have managed to prevent further losses below $101,700. This has led to the creation of lower lows on the daily timeframe. At the time of writing, Bitcoin is trading at $103,250, which means it is revisiting the neckline resistance from below. Its reaction here will determine whether it will eventually drop down to the support level of $96,000. If sellers gain control at this level, it will not only confirm the head and shoulders breakdown but could also lead to a short-term capitulation in other cryptocurrencies.