A prominent market analyst suggests Bitcoin could drop further, but RSI’s position may trigger significant price reactions.
Bitcoin’s recent price decline follows a period of strong gains, with its current price sitting at $103,019 amid a 1.42% drop in the past 24 hours. Notably, the intensifying feud between U.S. President Donald Trump and billionaire Elon Musk has contributed to the already existing downtrend.
As Bitcoin cools down, technical analysts and market trends suggest that further downward movement could be ahead.
Head & Shoulders Pattern Raises Concerns
Notably, Bitcoin’s price action has formed a potential Head & Shoulders pattern, a reversal signal. Analyst Titan of Crypto highlights that Bitcoin is sitting at a critical point on the neckline of the pattern.
The left shoulder, formed in early May at $104,063, and the head, which reached an all-time high of $111,800 later that month, are already in place. The right shoulder then formed in June, following a local top at $106,700.
This pattern suggests that if Bitcoin breaks below the neckline, it could signal a shift from an uptrend to a downtrend. Titan of Crypto points out that the potential target for this breakdown could be as low as $96,000, representing a further 6.92% drop from the current price of $103,140.
The analyst also remarks that the RSI is currently holding around 50, a level that often triggers significant reactions. In response to a comment about the rapid shift in market sentiment, Titan of Crypto clarified that his analysis focuses strictly on short-term price action as indicated by the chart, rather than on fluctuating sentiment.
Not sentiment only short term price action. I read what the chart shows. Nothing less nothing more. Overall the trend remains bullish.
— Titan of Crypto (@Washigorira) June 5, 2025
He emphasized that despite the short-term movements, the overall trend for Bitcoin remains bullish.
Decreased Inflows Signal Short-Term Bearish Pressure
In addition to the Head & Shoulders pattern, large holders netflow shows troubling signs. The 7-day change is a drastic -111%, indicating a significant decrease in inflows.
This reduction in buying pressure suggests that sellers may be outpacing buyers, contributing to the recent price decline. While Bitcoin’s price has surged over the past month, with 30-day and 90-day changes of +184.22% and +383.87%, the lack of support from large holders raises concerns over the sustainability of the rally.
Rising Volatility and Diminishing Momentum
Meanwhile, heightened volatility and diminishing momentum further suggest that Bitcoin’s rally could be losing steam.
John Bollinger, the creator of the Bollinger Bands, points out that Bitcoin has frequently touched or surpassed the Upper Bollinger Band, signaling potential exhaustion.
The “Three Pushes to a High” pattern, characterized by progressively smaller price increases, strengthens the view that Bitcoin’s bullish momentum may be waning.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
