Bitcoin’s price has faced significant pressure since reaching its peak of $108,353 on Dec. 17, with its recent dip below $92,000 raising concerns among analysts. This move has brought the potential formation of a bearish head-and-shoulders pattern into sharper focus.
If Bitcoin fails to hold above the neckline at $92,000, further downside could be on the horizon, with a potential drop to $79,500 based on the pattern’s projection. Chartered market technician Aksel Kibar has also identified $80,000 as a likely target if this bearish scenario plays out.
On shorter time frames, Bitcoin’s price movements suggest strong buyer interest during dips—like the recent decline to $91,500—but these recoveries are repeatedly met with selling pressure near intraday highs.
Prominent crypto trader Skew highlighted the current market dynamics, noting:
“Short positions dominate the market right now, and aggressive shorting indicates expectations of a breakdown from Bitcoin’s current range.”
Skew emphasized the critical nature of the $94,000 level, explaining:
“Failure to reclaim $94K while the market remains supply-heavy could lead to a significant sell-off.”
Maintaining four-hour closes above $94,000 is seen as crucial for Bitcoin to stay within its current range. Over the past week, selling pressure has largely come from the spot market, while perpetual futures markets have leaned toward margin shorts. Holding $94,000 as a support level could be the first step in invalidating the bearish head-and-shoulders pattern forming on the daily chart.
As Bitcoin navigates these turbulent conditions, traders will be closely monitoring the $94,000 to $99,000 range to assess whether the bulls can regain control or if the bearish pattern will continue to dictate the market’s direction.
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