In today’s technical analysis, we have to take a closer look at Bitcoin. Bitcoin continues to move significantly lower, printing new yearly lows and now approaching the lows from 2025. This confirms that the bearish momentum is not only intact, but also accelerating as selling pressure remains dominant.
The key structure visible on the daily chart is a head and shoulders formation, marked with an orange rectangle. This pattern has already been activated, as price decisively broke below the black neckline. That break generated a clear and proper sell signal and shifted the technical bias firmly to the downside.
At this stage, price is reaching an important target zone. This area is defined by the lows from 2025 and the highs from the first half of 2024. From a technical standpoint, this zone could attract some demand and may offer buyers an opportunity to step in and attempt to establish a new local low. Such behavior would not be unusual after an extended decline.
However, it is important to remain realistic about the broader context. The current selling pressure is strong, and there are no clear signs yet that buyers are ready to regain control in a meaningful way. A sharp and immediate recovery appears unlikely under the present conditions.
As a result, the sentiment remains clearly negative. The bearish outlook would only be neutralized or reversed if price manages to reclaim the black neckline and close back above it. As long as Bitcoin trades below that level, the technical structure favors sellers and downside risk remains dominant.