Bitcoin Faces Head and Shoulders: Delayed Fuse or Invalidated Pattern?
Bitcoin shows signs of a strengthening head-and-shoulders pattern, supported by declining money flow and proximity to a Death Cross.Summary
Bitcoin is experiencing renewed volatility as a two-month-old head-and-shoulders pattern gains traction, especially after a recent dip below $100,000. Technical indicators suggest bearish pressure, with the Chaikin Money Flow (CMF) hitting a 16-month low, indicating significant investor outflows and waning confidence. Furthermore, Bitcoin's exponential moving averages are nearing a Death Cross, a historical precursor to average declines of about 21%, potentially targeting the $89,400 level if current support fails.
Currently trading around $96,851, Bitcoin is struggling below the crucial $100,000 psychological level, which has been broken multiple times this month. The head and shoulders pattern projects a potential 13.6% drop toward $89,407 if Bitcoin cannot hold the $95,000 support. However, the bearish outlook could be invalidated if demand strengthens, allowing Bitcoin to decisively reclaim $100,000 as support and potentially target $105,000.
(Source：BeInCrypto)