Key takeaways:
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Bitcoin dropped over 4.5% on Could 19, confirming a bearish divergence and threatening a break under $100,000.
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Analysts spotlight $97,000–$98,500 as key help that the bulls should maintain.
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A possible inverse head-and-shoulders sample factors to a retest of $91,000 earlier than any bullish continuation.
Bitcoin (BTC) is down over 4.5% from its intraday excessive on Could 19, falling to round $102,000 in its worst day by day drop in over a month.
BTC’s drop accompanied draw back strikes elsewhere within the danger market, prompted by Moody’s newest downgrade of the US authorities as a consequence of a rising finances deficit and the dearth of a reputable fiscal consolidation plan.
The decline confirms a bearish divergence and, mixed with different technical components, raises the danger of a BTC value breakdown under $100,000, a key help stage.
Bitcoin’s bearish divergence hints at sub-$100K
Bitcoin’s value motion confirmed technical weak point forward of its Could 19 sell-off.
On Could 19, BTC pushed to a brand new native excessive above $107,000, however its relative energy index (RSI) printed a decrease excessive, confirming a basic bearish divergence.
This discrepancy between value and momentum is commonly a precursor to a development reversal, and on this case, it performed out with a swift 4.5% intraday decline. Analyst Bluntz warned merchants to “watch out with [placing] longs.”
Swissblock analysts noticed that Bitcoin “grabbed liquidity” above the $104,000–$106,000 resistance vary however did not maintain a breakout.
The rejection pushed the value again into a previous volume-heavy zone, with rapid help between $101,500 and $102,500 now below strain.
Swissblock identifies the $97,000–$98,500 vary as a key draw back goal primarily based on historic onchain quantity and buying and selling exercise if the $101,500-102,500 space fails to carry.
Bitcoin’s H&S sample targets $91,000
On the three-day chart, Bitcoin is forming the correct shoulder of a possible inverse-head-and-shoulders sample.
Whereas sometimes bullish in the long run, this setup implies a short-term retest of the 50-period exponential shifting common (50-period EMA; the pink wave) close to $91,000.
The possibilities of such a drop have elevated since BTC failed to shut above the vital $107,000 neckline stage, the identical zone that triggered bearish reversals in December 2024 and January 2025.
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A rebound from the $91,000 zone towards the neckline at round $107,000 might enhance Bitcoin’s odds of rising towards $150,000.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.
