BTC is suggesting a potential bearish reversalBitcoin (BTC) is currently exhibiting a head and shoulders pattern near the $96K– GETTEX:97K resistance zone, suggesting a potential bearish reversal. This pattern, characterized by three peaks—the middle being the highest—indicates that the upward trend may be weakening .
The Federal Open Market Committee (FOMC) meeting on May 7, 2025, is a pivotal event for BTC. While the consensus anticipates that the Fed will maintain current interest rates, the market is keenly awaiting Chair Jerome Powell's remarks for hints of future monetary policy directions. A dovish tone could bolster BTC prices, whereas a hawkish stance might exert downward pressure .
Technical analysis reveals that BTC has been trading within a range of $93,399.86 to $97,625.81 over the past 24 hours, with the current price around $96,362. The Relative Strength Index (RSI) stands at 58, suggesting that BTC is approaching overbought territory but hasn't crossed it yet .
A significant support level lies around $88,700, where substantial liquidity could trigger a price rebound if tested. However, if the head and shoulders pattern confirms a breakdown, BTC might retest lower support levels, potentially around $78,000 .
Actionable Insight: Traders should closely monitor the neckline of the head and shoulders pattern and the outcome of the FOMC meeting. A break below the neckline with increased volume could signal a bearish trend, while a dovish Fed stance might invalidate the pattern, leading to bullish momentum.
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