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Bitcoin (BTC) continues to reject key resistance levels, with a cryptocurrency analyst warning that the asset will likely crash below $90,000 based on the technical setup.
Specifically, Bitcoin is forming a potential head-and-shoulders on the hourly timeframe, a classic bearish technical pattern, according to cryptocurrency on-chain expert Ali Martinez in a post on X on December 3.
Notably, the pattern is marked by a peak (the head) flanked by two lower peaks (the shoulders), and it has historically signaled a price reversal.
In this case, Bitcoin is hovering near $95,000, aligning with the neckline of this pattern. Martinez suggested the target could plunge below $90,000 if a breakdown occurs.
With Bitcoin trading in the range of $94,000 and $95,000, Martinez noted that it is just above the critical support level at $93,000, marked by the lower boundary of a symmetrical triangle pattern.
Bitcoin could revisit the demand zone around $91,000 and $90,000 if the support fails, potentially leading to further bearish momentum.
Indeed, if this pattern is realized, it will dent the cryptocurrency community’s hopes that Bitcoin will hit the $100,000 mark. The leading digital asset has flirted with this price target as part of the post-election bull run.
Bitcoin’s push to $100,000
To this end, some analysts still believe there is a path to Bitcoin hitting a new record high. For instance, crypto trader and analyst Michaël van de Poppe, in a post on X on December 3, stated that there is a need for patience, noting that if Bitcoin reclaims the $98,000 level, it will usher in the asset’s momentum toward the ‘magic wonderland’ of $100,000.
“BTC still patiently waiting to break $98K to get ourselves into the magic wonderland of $100K+. I feel for all those livestreams with countdowns, might take some time,” he said.
Overall, as Bitcoin’s push toward $100,000 remains in focus, key market players are showing confidence in the asset. For instance, software company MicroStrategy (NASDAQ: MSTR) has continued its Bitcoin buying spree, adding 15,400 BTC for approximately $1.5 billion at an average price of $95,976 per Bitcoin.
The acquisition brings the company’s total holdings to 402,100 BTC, acquired for $23.4 billion at an average of $58,263 per BTC. The current value of its Bitcoin stash is estimated at around $38 billion.
Regarding corporate investment in Bitcoin, attention is now on Microsoft (NASDAQ: MSFT), where the company’s shareholders will vote on a proposal to add the asset to the company’s balance sheet on December 10. If approved, this move could be the catalyst Bitcoin needs to break $100,000 before the year ends.
Bitcoin price analysis
As of press time, Bitcoin was trading at $95,126, reflecting losses of about 1.3% in the past 24 hours. In the weekly timeframe, the digital currency is up by 1.7%.
In conclusion, Bitcoin seems to be in a delicate position. While the general market sentiment remains bullish, the technical setup cannot be ignored. It remains of interest how the asset interacts with the $90,000 and $95,000 levels.
Featured image via Shutterstock
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