Bitcoin (BTC) is potentially forming a head-and-shoulders bearish reversal pattern following a notable price drop. After a rally of over 50% since early November, BTC's price has been oscillating, suggesting a shift from bullish to bearish momentum. The first shoulder formed after an unsuccessful attempt to breach $100,000, followed by a retreat to $92,000, which marked the head. Currently, a right shoulder is underway as prices dropped near $97,000. If the sell-off continues and BTC falls below the neckline support at around $91,500, this would confirm the head-and-shoulders pattern, potentially leading to a further decline to about $75,000. This target is determined by the measured move method, which assesses the vertical distance from the top of the head to the neckline. While technical analysis is widely utilized to forecast price trends, traders are advised to proceed with caution as such patterns can fail.

Source 🔗