Bitcoin Forms Head & Shoulders: Is a Bearish Reversal Brewing? 📉

$BTC

BTC Price: 103,729.84 (-1.07%)

BTCUSDT Perpetual: 103,666.3 (-1.08%)

Hello Binance Square community! 👋

Bitcoin (BTC) is showing signs of a potential shift in momentum, forming what looks like a classic Head & Shoulders pattern—a well-known technical formation often associated with bearish trend reversals. This could be an early warning that the recent bullish run might be losing steam.

📊 Market Overview

Current Price: ~$103,484

24h Range: $105,888 (High) / $100,781 (Low)

Major Resistance Zone: $105,000 – $107,000

Key Support Level: $100,000

🔍 Technical Breakdown: Head & Shoulders Pattern

We’re seeing a familiar structure form on the BTC chart:

Left Shoulder: First peak accompanied by a spike in volume.

Head: A higher high—showing strong bullish interest.

Right Shoulder: A lower high—hinting at fading momentum.

The neckline, drawn between the troughs separating these peaks, is a key level to watch. If price breaks below this neckline, it could confirm the reversal pattern and potentially trigger a larger sell-off.

📉 Trade Idea: Short Setup to Watch

Potential Entry: If BTC drops below the neckline support.

Stop Loss: Above the right shoulder for risk control.

Take Profit Targets:

TP1: $98,000

TP2: $93,000

TP3: $90,000

📌 Always manage your risk and do your own due diligence before entering a position.

🧠 Market Insights

Volume Trends: Volume has been declining on the right shoulder—often a signal of weakening bullish conviction.

Sentiment Check: The Fear & Greed Index stands at 50, suggesting a neutral market stance.

Macro Watch: Keep tabs on economic news and policy shifts—they can greatly impact market moves.

Whether this pattern plays out or not, it's a good reminder that market structure and momentum often change when least expected. Stay sharp and trade smart! 💹

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