Bitcoin Testing Key Levels: Potential Breakout or Consolidation 
2025-01-16
Category: None

hello guys!

The chart shows a clear formation of a Head and Shoulders (H&S) pattern at the upper price levels, with the head around $101,000 and the left and right shoulders near $100,000. This is a key reversal pattern signaling a potential downside if the neckline at approximately $97,000 breaks.

On the broader structure, there is an upward wedge pattern forming, with Bitcoin facing strong resistance at $103,000-$105,000 (upper boundary). This range aligns with a second right shoulder observed previously, indicating a critical decision point for the asset.
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 The chart highlights two scenarios:
 
 
 Bullish Continuation:  A break above $101,000 and confirmation past $103,000 would likely drive the price to test higher levels, potentially towards $105,000 and beyond.

 Bearish Reversal:  If Bitcoin loses the neckline support ($97,000), it could test lower support levels near $93,800 and potentially $91,000-$92,000.
