Bitcoin approaches a key resistance level at $96,400, facing potential bearish Shark Harmonic formation. Breaking this resistance is critical to foster bullish momentum; otherwise, a significant downturn may follow towards $60,000. The market could see increased volatility as it decides its subsequent move.
Bitcoin finds itself at a crucial juncture, approaching a high-timeframe resistance area characterised by several technical indicators converging. Right now, there’s a potential bearish Shark Harmonic pattern forming, which, if validated, could trigger a significant price drop. For the bulls to avoid a larger correction, they need to quickly reclaim major resistance levels.
At present, Bitcoin (BTC) is trading within a key resistance zone where various factors, including structural resistance, volume profile resistance, and Fibonacci retracement levels, overlap. This setup is particularly concerning, given the emerging bearish Shark Harmonic pattern, which might heavily dictate Bitcoin’s movement going forward if it becomes confirmed.
From a technical standpoint, Bitcoin has found its way back into a major descending channel, suggesting a bearish retest might be underway at the resistance. The developing Shark Harmonic hints at a considerable downward momentum should the price reject the current level. The critical resistance threshold sits at $96,400, and breaking this barrier decisively is essential for a bullish outlook; otherwise, the risk of a deeper pullback remains high.
Previously, Bitcoin managed to break out of a long-standing channel, yet it failed to maintain that momentum, quickly falling back within the previous range. This rapid retreat indicates that Bitcoin’s current rally is potentially just a bearish retest of resistance, with further downside likely if the price doesn’t hold.
The bearish scenario gains credence with the Shark Harmonic pattern coming into play. This setup fits the textbook definition: the C-leg forming from a significant swing low (the A point), with Bitcoin now pushing into the D zone—a classic reversal area. If Bitcoin’s price fails in this area, the harmonic pattern will confirm and could lead to projected downside targets being activated.
Importantly, the $96,400 level is more than a random number; it’s also aligned with the 0.618 Fibonacci retracement level, reinforcing its significance as a major point of control regarding volume and structural resistance. Any breakout above this region, especially when accompanied by strong volume, would negate the bearish harmonic and suggest a return of bullish momentum for Bitcoin. Until that happens, sellers appear to hold the upper hand.
Looking ahead, Bitcoin’s immediate future will largely depend on its response to the $96,400 resistance zone. A successful breakout above this level coupled with momentum could overturn the developing bearish harmonic, allowing Bitcoin to aim higher. However, a rejection here would confirm the bearish pattern and could send Bitcoin spiralling down towards the $60,000 mark or even lower. With traders bracing for increased volatility in this pivotal zone, Bitcoin’s next major trend could be on the line soon.
