Bitcoin Price Crash Trigger to $96,000: The Head and Shoulders Pattern Forming

Bitcoin’s price recently dropped below $105,000 due to bearish sentiment and profit-taking, marking a potential head and shoulders pattern. This technical formation could lead to a further decline towards $96,000, as Bitcoin struggles near key support levels. Analysts warn that if it breaks below $103,000, a larger downturn could ensue, impacting the wider cryptocurrency landscape.

Bitcoin, after several days of fluctuating around the $105,000 mark, seems to be under increasing pressure from bearish sentiment and profit-taking traders. In fact, over the last 24 hours, Bitcoin struggled to maintain its position at $105,000, and ultimately fell to a lower support range near $101,000 before making a slight rebound. This decline raises concerns, as technical analysis suggests that this price point could be vulnerable.

The current state of affairs on Bitcoin’s daily candlestick chart reveals what crypto analyst Titan of Crypto describes as a classic head and shoulders formation. This bearish pattern could signal a potential drop down to the $96,000 price point if the formation plays out as expected. The pattern features a peak, or ‘head’, around mid-May, flanked by two lower highs, known as ‘shoulders’, on either side of a downward sloping neckline that has now become a critical support line.

Bitcoin is currently hovering just above this neckline, testing its structural support. In technical terms, a decisive break below this level, paired with strong trading volume, could activate a measured move. This calculation appears to target a descent directly to approximately $96,054—a drop that represents nearly an 8% decrease from its current levels, and further highlighting the lack of solid support in between.

Moreover, Bitcoin’s daily Relative Strength Index (RSI) is hovering around the 50-mark. This level often sparks significant price reactions. If Bitcoin dips below this midline, it could trigger a bearish shift in momentum, compounding the existing price pressures.

Should Bitcoin tumble towards $96,000, it would starkly contrast the bullish trend it experienced just two weeks ago when it reached an all-time high of $111,814. Since then, it has broken through critical support levels at $110,000, $107,000, and ultimately $105,000, narrowing the next significant zone of resistance down to $103,000. A failure to maintain this threshold could likely drive Bitcoin down toward the $101,000 area—a crucial line just before more severe declines might ensue.

Interestingly, Titan of Crypto noted an inverse head and shoulders pattern with a neckline situated around $103,500. Although Bitcoin fell below this level recently, bulls managed to halt the decline, keeping it above $101,700. However, the price action has resulted in the creation of lower lows, adding to the concerns.

As it stands, Bitcoin is trading at about $103,250, putting it in a critical position against the neckline resistance. Its immediate reaction to this level will be crucial in determining whether it will head towards the projected $96,000 mark. If selling pressure prevails, this could confirm the breakdown of the head and shoulders pattern and may even precipitate a broader sell-off across the cryptocurrency market.