Rounded Top Pattern Threatens BTC Price, Targets $71K
Bitcoin is currently trading near $77,870 on its four-hour chart, but it's not out of danger just yet. A rounded top pattern has emerged on the chart, which could potentially lead to a drop in price if confirmed. The pattern's neckline acts as a key support area around $76,000-$76,300.
A decisive four-hour close below this zone would increase the likelihood that the rounded top has completed, and a potential breakdown near $76,000 could produce a downside target around $70,900-$71,000. Currently, Bitcoin's four-hour relative strength index (RSI) stands at 54.5, keeping momentum broadly neutral.
Additionally, Bitcoin is trading around its 20- (green), 50- (red), and 100-period (purple) exponential moving averages (EMAs), which highlights the ongoing battle between bulls and bears. A recovery above $79,500-$80,000 would weaken the bearish setup, while a move back above recent highs would largely invalidate it.