Bearish Bitcoin Chart Pattern Threatens Price Drop to $76K Before Trump Inauguration
Bitcoin’s price has been under pressure since reaching $108,353 on Dec. 17, and its recent drop below $92,000 has sparked concerns among analysts. The price action is potentially confirming a bearish head-and-shoulders chart pattern, which could signal further declines for Bitcoin.
Key Points:
Head-and-Shoulders Pattern: A few daily closes below the $92,000 neckline could trigger a drop to the pattern’s target of $79,500, with some analysts, such as Aksel Kibar, setting a price target of $80,000 if the pattern is confirmed.
Support and Selling Pressure: Despite recent dips to $91,500, buying pressure has been absorbed, with selling pressure rising as Bitcoin returns to the intraday range high.
Critical Levels:
$94,000 Resistance: According to crypto trader Skew, the $94,000 level is crucial. If Bitcoin fails to reclaim this level, further aggressive shorting could lead to a breakdown from the current price range.
Market Sentiment: The short positioning is dominant, signaling that the market may expect a further drop unless Bitcoin can hold the $94,000–$99,000 range. A series of four-hour closes above $94,000 will be essential to invalidating the bearish chart pattern and protecting the current price range.
If the bearish pattern holds, Bitcoin could see a decline toward $76,000 or even lower before the Trump inauguration in 2025. However, reclaiming the $94,000 level could prevent further downside, with the market waiting for confirmation in the coming days.
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