As of June 5, 2025, Bitcoin (BTC) is trading around $104,975, reflecting a slight decline of 0.87% over the past 24 hours. Recent chart patterns suggest potential bearish momentum.
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š§ Chart Pattern Analysis: Head & Shoulders Formation
A classic Head & Shoulders pattern has emerged on the BTC/USDT chart:
Left Shoulder: Formed with a moderate high accompanied by increased volume.
Head: The highest peak, clearly above both shoulders.
Right Shoulder: Lower than the head, approximately at the same level as the left shoulder.
Neckline: A slightly upward-sloping support line connecting the two troughs, currently being tested.
This pattern is a bearish reversal indicator. A break below the neckline could signal a strong downtrend.
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š Technical Indicators
EMA 7 & EMA 21: Price is currently below both EMAs, indicating short-term and medium-term weakness.
MACD: The MACD line is dropping significantly, showing momentum loss. A bearish crossover (MACD line below the signal line) may confirm further downside.
These indicators collectively suggest a bearish outlook in the near term.
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š Potential Scenarios
Bearish Breakout: If the price breaks below the neckline, BTC could drop toward the major support zone around $92,915.
Bullish Rebound: If the price bounces from the neckline, a recovery move may occur. Watch for the price to reclaim the EMAs and form a higher high.
Traders should monitor these levels closely to make informed decisions.
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ā ļø Risk Management
Confirmation: Wait for a confirmed break below the neckline before entering a short position.
Stop-Loss: Consider setting a stop-loss above the right shoulder to manage risk.
Volume Analysis: Monitor trading volume for confirmation of breakout strength.
Implementing proper risk management strategies is crucial in volatile market conditions.
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*Note: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.*
