In the recent Bitcoin rally, this level acted as a crucial threshold and the price surged above it to create a new range. The pullback is seen as a test of the validity of the breakout, and if the H&S formation keeps developing, $80,000 could be a potential downside target. The convergence of technical and behavioral indicators is the main conclusion of the analysis.
Kibar points out that the market community’s knee-jerk and extremely confident replies frequently serve as markers of elevated speculative sentiment, which may trigger a correction. This behavioral observation is consistent with the historical trend of pullbacks following an initial breakout in broadening patterns.
According to the chart, in order to avoid a more significant retracement, key support levels like $91,000 and $87,000 must hold. Should these levels be broken, additional bearish pressure might be applied that could push the price as low as $80,000. On the other hand, a bounce above $100,000 would render the bearish H&S pattern meaningless and pave the way for a further upward bullish leg.
The future of Bitcoin is still in a precarious position. The $80,000 target is realistic in the H&S scenario, but whether Bitcoin can stabilize or face additional downward pressure will depend heavily on technical factors like key support and resistance levels, as well as overall market sentiment.
This article was originally published on U.Today
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