Bitcoin Touches Neckline of Bearish Pattern

The Bitcoin price has bounced back to touch the neckline of a bearish head and shoulders pattern. If this is confirmed, it could lead to a significant drop in value.

A breakdown confirmation would send the price down to around $60K, which is below the bull market trendline and potentially even lower.

However, previous head and shoulders patterns have failed to play out, and short-term momentum indicators are showing upside price momentum.

The daily Stochastic RSI indicators are reaching their bottom, which is quite bullish given the lack of corrective price movement.