Bitcoin faces a technical crossroads as analysts identify bearish chart patterns while the cryptocurrency remains trapped between critical price levels.
What Happened: Technical Analysis
Crypto Patel says Bitcoin confirmed a market top and entered a macro retracement phase after completing a Head and Shoulders formation.
The analyst's latest update shows Bitcoin lost a key bullish support level, shifting market structure into a bearish phase.
The Head and Shoulders pattern achieved its 162% downside projection target, reinforcing the view that a cycle top is in place.
Macro Fibonacci retracement levels from the bear-market low to the recent peak outline potential support zones at $56,700 (0.382 level), $44,000 (0.5 level), and $35,000 (0.618 level), with the latter representing the strongest long-term support area.
CyrilXBT notes Bitcoin faces rejection from the $96,000-$100,000 supply zone and the 50-day exponential moving average, with price hovering near $90,300.
Buyers have defended the $86,000-$88,000 demand zone, preventing a broader breakdown.
An unfilled fair value gap between $98,000 and $100,000 could draw a short-term relief bounce before the broader downtrend resumes.
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Why It Matters: Momentum Battle
A sustained break above $100,000 would signal a trend reversal. A loss of $88,000 support could trigger a pullback toward $72,000-$76,000.
The macro outlook remains bearish, with the dominant path pointing toward the $70,000-$60,000 Fibonacci support zone, though traders should wait for confirmation before committing to directional positions.
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