Bitcoin Faces Potential Drop to $96K as Head and Shoulders Pattern Forms

After fluctuating around the $105,000 mark, Bitcoin appears to be losing strength due to bearish pressures and profit-taking. It recently dipped below $105,000, finding temporary support around $101,000. Technical analysis reveals the formation of a head and shoulders pattern on the daily chart, which traditionally signals a potential downside move. If the pattern completes with a break below the neckline, the projected target approximates $96,000, representing about an 8% decline from current levels. The RSI indicator at around 50 suggests a critical point for momentum, and a move past this could confirm bearishness. Bitcoin's recent price action shows support levels at $110,000, $107,000, and $105,000 have been breached, with the next key threshold at around $103,000. A failure to hold above $103,000 could push the price down to $101,000, heightening the risk of a significant correction. Currently trading at approximately $103,250, Bitcoin's reaction at the neckline resistance will be crucial. A decisive move below this support could confirm the head and shoulders pattern and lead to further declines, possibly triggering a broader downturn in the crypto market.