Bitcoin reappears classic 'Head and Shoulders' pattern, falling below... the 100,000 mark is at risk!
With the tense situation in the Middle East and the Federal Reserve lowering its economic growth forecast while raising inflation expectations, the sentiment in the cryptocurrency market has become increasingly cautious.
Bitcoin is currently displaying a classic Head and Shoulders pattern on the 4-hour chart, increasing the risk of a drop toward the $99,000–$100,000 range. The neckline support around $104,000 is under pressure. If this support level is broken, the technical target of this pattern will point to around $99,279.
From the volume distribution data, there is strong resistance near $106,000, while there is a lack of significant buying interest below $103,000. This low volume area could accelerate any price decline.
From the moving average indicators, Bitcoin is currently still below its 50-period EMA ($105,777) and struggling near the 20-period EMA ($104,859). The dual moving average pressure indicates that the bearish momentum is likely to continue. The 14-period RSI reading is 46.48 and is trending downward, indicating weakened buying pressure, with no bullish divergence present. Unless Bitcoin reclaims key short-term resistance levels, its path of least resistance remains downward. A confirmed closing price below $104,000 could likely trigger further selling.
Disclaimer: The content of this article is for informational sharing only and does not constitute investment advice. The cryptocurrency market is highly risky and volatile; investment decisions should be made cautiously.
