$BTC BTC, Head and Shoulders Top? Or is the correction over?

From the pattern perspective, the BTC daily head and shoulders top is about to complete. If it truly forms a head and shoulders top, according to the measured distance of the pattern, the subsequent drop target is in the 90-91K range, which offers a very considerable profit space.

From a structural standpoint, 0-3 is a daily lower consolidation divergence, and 3-4 has a relatively strong rebound. There are two possible evolutions going forward:

1. If 3 starts to rise at the same level as 0-3, then 4 must break through 1 and 2, which is 106700;

2. If 4 does not rebound to 1, it forms a third type of selling point, then a secondary bottom test, followed by expansion (continued consolidation);

Therefore, whether it can break through 2 is quite critical. 106100-106700 is a key resistance level.

In the 4-hour chart, this rebound has reattached to the moving average, and if it consolidates sideways, the moving average will turn bullish. Thus, personally, I will first layout according to the first classification and then see if it can successfully break through 2. If it breaks through, treat it as a large-level upward trend; if it cannot break through, treat it as a fluctuating downward trend.

Additionally, the confirmation of the head and shoulders top requires breaking below the neck line and not being able to stand above the neck line on a pullback. Currently, the neck line position is at 100300, which is also close to the 100K integer level. If this position is not effectively broken, the head and shoulders top is merely a prediction, and currently, going short is still a left-side entry strategy.