Since late November, the price trend of Bitcoin has evolved into the so-called 'Head and Shoulders' (H&S) pattern, indicating that the market may shift from a bull market to a bear market.
In November, the first attempt to break through the $100,000 mark was unsuccessful, marking the formation of the left shoulder. Subsequently, the head phase appeared, with Bitcoin rapidly retreating from its historical high of over $108,000 to $92,000 in the second half of December. Meanwhile, the current 5% decline driven by economic data has brought prices close to $97,000, suggesting the formation of the right shoulder.
If selling pressure persists and causes prices to break below the neckline (the horizontal trend line connecting the two shoulder lows), then this head and shoulders reversal pattern will be confirmed. As of now, the so-called neckline support is located around $91,500.
According to the Measured Move Method, breaking below this level could lead to prices probing down to about $75,000. This method measures the vertical distance from the 'head' peak to the 'neckline' and then subtracts the same distance from the 'neckline' price point to arrive at a potential downside target.
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