Bitcoin Pulls Back from Highs, Head and Shoulders Pattern Emerges

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:

1. The red neckline — the main structure that needs to give way before the head and shoulders is confirmed.

2. 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.

Source: https://www.axiory.com/analytics/technical-analysis/bitcoin-pulls-back-from-highs-head-and-shoulders-p