Bitcoin started the week on a tear, breaking into new all-time highs above $123,000 and pushing further into uncharted territory. But after that euphoric rally, the market has entered a bearish correction — and the current price structure is raising eyebrows.
What we’re seeing now is the early formation of a head and shoulders pattern, a classic technical signal that often marks tops. The right shoulder is currently forming, but it’s too early to declare a reversal. The pattern is not complete, and no sell signal is active yet.
For a valid bearish signal, two key supports must be broken:
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The red neckline — the main structure that needs to give way before the head and shoulders is confirmed.
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The black uptrend line, which has been acting as a broader support throughout Bitcoin’s recent surge. A break below this level would confirm a shift in long-term sentiment.
Until those two supports are broken, this remains a correction within an uptrend. The structure may give sellers some hope, but buyers are still in control — and as long as price remains above both the neckline and trendline, bullish momentum holds.
Traders should stay alert. The setup is worth watching, but the verdict isn’t in yet.