Bitcoin bulls should 'be careful with longs' as BTC price risks $100K breakdown

2 weeks ago

Key takeaways:

Bitcoin dropped implicit 4.5% connected May 19, confirming a bearish divergence and threatening a interruption beneath $100,000.
Analysts item $97,000–$98,500 arsenic cardinal enactment that the bulls indispensable hold.
A imaginable inverse head-and-shoulders signifier points to a retest of $91,000 earlier immoderate bullish continuation.

Bitcoin (BTC) is down implicit 4.5% from its intraday precocious connected May 19, falling to astir $102,000 successful its worst regular driblet successful implicit a month.

BTC’s driblet accompanied downside moves elsewhere successful the hazard market, prompted by Moody’s latest downgrade of the US authorities owed to a rising fund shortage and the deficiency of a credible fiscal consolidation plan.

The diminution confirms a bearish divergence and, combined with different method factors, raises the hazard of a BTC terms breakdown beneath $100,000, a cardinal enactment level.

Bitcoin’s bearish divergence hints astatine sub-$100K

Bitcoin’s terms enactment showed method weakness up of its May 19 sell-off.

On May 19, BTC pushed to a caller section precocious supra $107,000, but its relative spot scale (RSI) printed a little high, confirming a classical bearish divergence.

This discrepancy betwixt terms and momentum is often a precursor to a inclination reversal, and successful this case, it played retired with a swift 4.5% intraday decline. Analyst Bluntz warned traders to “be cautious with [placing] longs.”

Swissblock analysts observed that Bitcoin “grabbed liquidity” supra the $104,000–$106,000 absorption scope but failed to prolong a breakout.

The rejection pushed the terms backmost into a anterior volume-heavy zone, with contiguous enactment betwixt $101,500 and $102,500 present nether pressure.

Swissblock identifies the $97,000–$98,500 scope arsenic a cardinal downside people based connected humanities onchain measurement and trading enactment if the $101,500-102,500 country fails to hold.

Bitcoin’s H&S signifier targets $91,000

On the three-day chart, Bitcoin is forming the close enarthrosis of a imaginable inverse-head-and-shoulders pattern.

While typically bullish successful the agelong term, this setup implies a short-term retest of the 50-period exponential moving mean (50-period EMA; the reddish wave) adjacent $91,000.

The chances of specified a driblet person accrued since BTC failed to adjacent supra the captious $107,000 neckline level, the aforesaid portion that triggered bearish reversals successful December 2024 and January 2025.

A rebound from the $91,000 portion toward the neckline astatine astir $107,000 could summation Bitcoin’s likelihood of rising toward $150,000.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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