Bitcoin dropped to around $63,250 after failing to break past recent highs near $67,000. The move follows a classic head and shoulders pattern forming on the 4-hour chart, hinting at the start of a potential decline.
Price broke through the neckline, suggesting a slide that could reach as low as $60,500 based on the pattern's measured move. But this drop might not be a straight plunge. The current support near $63,250 could trigger a short bounce, possibly retracing to the neckline before pushing down again.
Short-term indicators like the Stochastic RSI are nearing oversold levels, which might spark some upward momentum soon, but whether this will halt the bearish trend remains uncertain.
On the daily chart, Bitcoin’s recent peak falls short of June's high, marking a lower high. Attempts to break out from the descending channel failed, with multiple fakeouts weakening bulls’ resolve. The RSI is flirting with a breakdown from a wedge pattern, and if confirmed soon, Bitcoin could head lower within the descending channel.
The weekly view adds to concerns as the current candle threatens to close below the $63,000 support and the long-term bull trendline. A breach here would open the door for further declines, possibly in line with the daily channel’s bottom.
This technical pressure is intensifying just as the broader market shows signs of uncertainty. The Stochastic RSI on the weekly chart hints at rolling over, which could mean the bulls are losing control in the short term.
This material is informational and not financial advice.
