Analyst: Bitcoin's Potential 'Head and Shoulders' Pattern Suggests Drop to $75,000

Since late November 2024, BTC's trend has evolved into a “Head and Shoulders” (H&S) pattern in technical indicators, signaling a change in the bullish trend from bearish to bullish, according to Omkar Godbole, a technical analyst on CoinDesk's Markets team. Analysts said the first shoulder pattern was marked by a failed attempt to break above the $100,000 mark in November. This was followed by a head pattern, which quickly retreated to $92,000 from an all-time high of more than $108,000 hit in the second half of December. At the same time, a 5% drop to nearly $97,000 hinted at the formation of a right shoulder. The bearish head and shoulders reversal pattern will be confirmed if the sell-off continues and the price breaks below the neckline (the horizontal trendline connecting the bottoms of the two shoulders), a break below which could signal a further decline to around $75,000.