The daily chart of Bitcoin shows a potential head-and-shoulders pattern, with short-term downward risks intensifying?
The daily chart of Bitcoin has formed a typical head-and-shoulders pattern, with the key support level at the neckline locked at 112000.
It is crucial to pay attention to the effectiveness of this support: if the price completely breaks below the neckline, the downward space will further open up, and it may accelerate to 108000 in the short term, with a higher likelihood of moving towards the key level of 105150 later.
From the candlestick structure, market sentiment is becoming cautious, and several strong bearish candlesticks have already appeared, with the pattern approaching the early stage of "three crows," indicating that bearish forces are dominant, and downward momentum is still accumulating.
Technical indicators also confirm the short-term weak pattern:
1. The MACD indicator has turned from positive to negative, clearly indicating a bearish trend.
2. The RSI indicator is currently at the 41 range, not yet entering the oversold area, meaning that in the absence of strong rebound momentum, there is still room for further downward movement in price.
However, it is important to note that the overall upward pattern has not completely collapsed.
Observing from a larger cycle, the trend of Bitcoin's "gradually rising lows" since June has not been broken.
In addition, the small bearish candlestick patterns such as doji and spinning tops formed in the 11.3-11.4 range reflect that the current market is more about "hesitation in the tug of war between bulls and bears," rather than a complete surrender of the bulls, indicating that there may be a need for consolidation in the short term.
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