Bitcoin Bulls Under Pressure: Key Levels to Watch and Trading Strategies

The price movement of Bitcoin is currently being closely monitored as it tests the lower boundary of the 50-day range. Since November 21, this leading cryptocurrency has formed a significant head and shoulders pattern, signaling that a break below the critical level of 91,281 could pave the way for a potential 18% decline. If this occurs, Bitcoin could target a significant drop to 74.16 thousand, a sharp decrease from its current level. Despite this possibility, broader market sentiment and strong fundamental factors suggest that such a drastic move is unlikely to happen in the near future. However, the potential for this underlying downside should still be carefully considered.

Main Chart Pattern: Head And Shoulders The head and shoulders pattern is a reliable indicator of trend reversal. The left shoulder, head, and right shoulder patterns show that Bitcoin is struggling to maintain its upward momentum and may face significant pressure if the price breaks below the 91,281 support level. This price point is crucial because if broken, the price could decline further, targeting 74.16 thousand, corresponding to an 18% drop from the current level. Although this model shows potential for price reduction, the broader uptrend and strong fundamental factors surrounding Bitcoin - such as increasing institutional adoption and concerns of inflation - indicate that a sharp decline is not necessarily imminent. However, both traders and investors need to exercise caution in the face of increased market volatility. Careful Trading Strategy Based on this technical setup, traders have a number of potential strategies they may want to consider:

1. Short-term when breaking below 91.281: If Bitcoin breaks below the important level of 91,281, this could signal the start of a downward move. Short selling can be considered at this point, with target ranges around 86k or 84k. This is a more conservative approach, as buyers have shown interest in these levels in history and are more likely to rebound before the price reaches a lower target of 74k. Traders should closely monitor these levels and adjust their positions accordingly.
2. Buy when the price drops to nearly 86k: The 86k level is an important support point for Bitcoin and has previously acted as a bounce area for the price. If the price drops to this level, traders may want to take advantage of the opportunity by buying when the price falls. Historically, strong sell-offs have often brought buying opportunities for those who believe in the long-term potential of Bitcoin. This strategy depends on the belief that buyers will step in and stabilize the price at this support level.
3. Buy now with caution: For more optimistic prospects, entering a long position at the current price level may seem attractive. However, caution is necessary, as the market may test support levels below 91.281 before rising further. While the overall trend is still upward, traders must be aware of the market’s potential to temporarily break this support, causing some short-term pain before continuing its upward trajectory. Still Vigilant Around Level 91.28k Finally, the price action around 91.28 thousand will be an important indicator of Bitcoin’s short-term direction. Breaking below this level could trigger a series of downward moves, while a recovery could signal new buying momentum. Traders should be cautious and prepared to react to changing market conditions. In summary, the near future of Bitcoin seems to be constantly changing, with both scenarios of price decline and increase. Although breaking below 91,281 could lead to a downturn, the fundamental strength of Bitcoin’s fundamental factors suggests that the downward trend may be limited. Whatever the outcome, traders should ensure that they have clearly defined risk management strategies to navigate the volatile context ahead. DYOR! #Write2Earn #Write&Earn $BTC (BTCUSDT) {spot}