Bitcoin recently hit a new all-time high of $111,814, but things might be cooling off. Let’s look at what’s happening.
Signs of a Slowdown
After reaching that record high on May 22nd, Bitcoin has struggled to break above it. This repeated failure is causing concern among analysts. Charts are showing a pattern of lower highs, suggesting bullish momentum is weakening.
Resistance and the Double Top
Analysts are pointing to a clear rejection of prices around $111,000 to $112,000. Bitcoin keeps testing this level but can’t break through. This, combined with some hesitation from buyers, is a significant red flag. The price action is starting to look like a “double top,” a technical pattern often seen before a price reversal.
The Predicted Dip
Based on this double top pattern and the recent price movements, analysts predict a potential zigzag pattern downward. A break below the current support level around $105,000 could trigger a drop towards the $101,000 to $102,000 support zone. This zone held strong earlier in May, so it’s a key level to watch.
Short-Term Bearish, Long-Term Bullish?
While the overall long-term outlook for Bitcoin remains bullish for many, the short-term picture is looking bearish. This predicted dip doesn’t necessarily negate the long-term positive sentiment, but it’s something to be aware of.
Current Situation and Next Steps
At the moment, Bitcoin is trading below $106,000. If it can’t hold above $105,000, a further drop towards $101,000 is possible, potentially happening over the weekend. The next few days will be crucial in determining whether this bearish prediction plays out.
