Bitcoin (BTC) is continuing to experience some bearish price action, and it could be about to go under $91,000, a price level it hasn’t seen since late November 2024. Is this the beginning of a much bigger price dip, or can the bulls still save the day? Market sentiment for Bitcoin is generally cautious, and bordering on fear . All it may take for a mass rush for the exits is a steep dive below $91,000. Should this happen, and the price also confirms below the long-time ascending trendline going back to 2021, things could become very interesting. So what is the prevailing view across social media? Many analysts are advising to take profits, and some are warning as to the holding of Bitcoin and altcoin positions, given the peak and subsequent roll over of the $BTC price. Head and shoulders pattern - is the writing on the wall? Source: TradingView A head and shoulders pattern does look to be playing out. It just remains to be seen if the price will confirm below the neckline, which it has just sunk below at time of going to press. Obviously, there is still the rest of the day for the price to go in one direction or the other, and a daily candle confirming below is probably the minimum needed to know whether this pattern is going to continue or be invalidated. Descending triangle? Another factor to the advantage of the bears is that the price action may also be starting to form a descending triangle. This is where the price makes a series of lower highs, while the lows remain relatively constant. Therefore, even if the bulls can avoid a price dip now, a continuance of sideways price action could lend itself to this particular outcome. A measured move for either of these two bearish scenarios would see the price going all the way down to $75,000, which isn’t that far off of the top of the previous bull market at $69,000. Should the price get down this far, one more confirmation at this horizontal level wouldn’t be the end of the world, unless of course this failed and a probable bear market ensued. $85,000 is the next support level Source: TradingView The daily time frame for $BTC puts things into perspective. The price has reached the ascending trendline, and must either bounce from here, or fall through to much lower levels. The price sank down through the 50 SMA (blue line) a week ago, and looks as though it could easily now descend to the 100 SMA (green line). This would line up with the 0.382 Fibonacci at $85,700. If the price fell all the way to the 200 SMA, this is currently at just under $74,000. Put the bearishness aside Nevertheless, if one were to put all this bearishness aside, even if the price came down to the 100 SMA, this is only a retracement to the 0.382, which can actually be considered quite bullish. Also, we are still probably in the latter stages of the bull market, with arguably the most parabolic stage still to come. Donald Trump will be inaugurated in a week’s time. Plenty of tailwinds can then get behind the Bitcoin price. It will take some strong conviction to fade the next potential upside move. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
