The Bitcoin price continues to face heavy selling pressure as market sentiment turns increasingly bearish. After weeks of struggling around the $110,000 level, analysts are warning that a deeper correction could be on the horizon. A popular technical indicator — the head and shoulders pattern — now suggests that Bitcoin may be on the verge of another sharp drop, potentially falling below the $100,000 mark.
Bitcoin (BTC) has been consolidating around $110,000 over the past few sessions, following a steep decline from its recent all-time high of over $126,000. Traders are growing cautious as the cryptocurrency struggles to find strong support amid persistent selling. According to analysts, the current market setup is starting to resemble a classic head and shoulders formation — a bearish technical pattern that often signals the end of an uptrend.
Crypto analyst Toby Dawson, who shared his insights on TradingView, believes that the structure of this pattern points toward a possible breakdown. He notes that Bitcoin’s inability to hold above $117,000 in recent weeks adds weight to the bearish outlook.
In Dawson’s analysis, the left shoulder of the pattern was formed around $117,000 in September when Bitcoin first encountered resistance after an extended rally. The subsequent breakout to a new high above $126,000 formed the “head” — the central and highest peak of the pattern.
However, once the price met strong resistance at that level, Bitcoin began to retrace, completing the formation of the right shoulder near the $117,000 mark in late October. This right shoulder typically indicates weakening buying momentum and signals that sellers are starting to regain control of the market.
“The pattern is clear,” Dawson noted. “Bitcoin has completed a textbook head and shoulders structure, and the neckline sits just around $110,000. A confirmed break below that zone could trigger a cascade of sell orders and push BTC toward the $90,000 region.”
The key level that traders are now watching is the neckline — near $110,000 — which acts as a critical support zone. If Bitcoin closes below this level on the daily chart, it would confirm the head and shoulders breakdown pattern.
In that scenario, technical projections suggest that Bitcoin could fall between $90,000 and $95,000 in the short term. However, some analysts believe the correction could deepen further, especially if broader macroeconomic conditions remain uncertain.
Dawson added that a temporary bounce could still occur before the full breakdown happens. “If Bitcoin retests $117,000 without breaking higher, that would reinforce the bearish setup and confirm further downside risk,” he said.
Another crypto analyst echoed Dawson’s warning, saying that Bitcoin historically experiences sharp retracements after setting new all-time highs. The analyst highlighted the importance of the 1-week 50 EMA (Exponential Moving Average) as a crucial line of defense for bulls.
“The $100,000 level is the last major support zone before a potential freefall,” the analyst said. “If we lose that, Bitcoin could easily test $85,000 or even lower before stabilizing.”
This perspective aligns with previous market cycles where Bitcoin saw significant pullbacks of 25–40% following euphoric rallies. Analysts stress that such corrections are normal within long-term bull markets but warn that volatility may remain elevated until strong buying returns.
Despite the near-term bearish signals, some market observers maintain a cautiously optimistic long-term outlook. They point out that institutional inflows, corporate accumulation, and ETF demand remain strong fundamentals supporting Bitcoin’s long-term trajectory.
Historically, corrections following head and shoulders formations have often been followed by extended periods of consolidation before a new bullish trend begins. If Bitcoin does dip below $100,000, it could present a significant buying opportunity for long-term investors seeking to accumulate at discounted prices.
The latest market sentiment data also reflects growing fear among investors. According to the Crypto Fear and Greed Index, sentiment has dropped sharply from “Greed” to “Neutral,” indicating that many traders are moving to the sidelines. Spot trading volumes have decreased as leveraged positions continue to be liquidated across exchanges.
At the time of writing, Bitcoin is trading near $109,800, with the neckline support at risk of breaking. Analysts believe that if selling pressure intensifies, a drop to $95,000 could happen faster than expected.
For now, the focus remains on whether Bitcoin can hold the $110,000 support level. If it does, a short-term recovery toward $117,000 could follow. But if the head and shoulders breakdown is confirmed, the next major targets lie between $90,000 and $85,000.
While the technical outlook looks weak in the short term, long-term believers in Bitcoin continue to see corrections as part of the broader adoption cycle. Traders, however, are advised to remain cautious and watch for confirmation before making major moves.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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