Analyst Anticipates Significant Decline in Bitcoin Value as Bearish Trends Intensify Following $111,000 Peak

Bitcoin appears to be experiencing a period of exhaustion after reaching a new peak of $111,814 on May 22. Following this milestone, there have been several unsuccessful attempts to surpass this threshold, resulting in heightened bearish sentiment.

In recent days, the price trend has started to establish a pattern of lower highs on the 4-hour chart, suggesting, based on technical analyses, that bullish momentum may be diminishing.

Resistance Levels and Double Top Risk

The analyst noted a notable rejection pattern around the $111,000 to $112,000 range, which Bitcoin has tested multiple times recently without breaking through. This trend of repeated failures indicates that bullish momentum is waning, particularly as retail investors are now showing reluctance to engage in purchases in this range.

Current price behavior is beginning to suggest a traditional double top pattern, which typically points to a transition from bullish to bearish control. The lack of strong upward movement further supports the possibility of a significant market correction in the near future.

Considering this outlook, the analyst depicted a potential zigzag trajectory on a 4-hour candlestick chart, predicting that further rejection from the resistance zone could lead to a downward shift. Moreover, these consistent rejections have weakened support around $105,000, raising the risk that this level could soon be compromised.

Potential Drop to $102,000 Support Level

If this zigzag scenario materializes, Bitcoin’s value may decline over the next few days, targeting a support zone between $101,000 and $102,000. This area is significant as it served as a robust support point from May 14 to May 19, where Bitcoin subsequently found stability, allowing for a rebound that pushed it to reach the all-time high of $111,900 on May 22.

Additional Consideration

While the overall outlook remains bullish in the long run, current market dynamics have shifted the short-term sentiment to bearish. This analysis suggests that Bitcoin could retreat to the $101,000 to $102,000 range before any upward movement resumes.

At the time of this report, Bitcoin is valued at $105,272, reflecting a 2.5% decrease over the past day. The $106,800 support level has already been breached, and maintaining above $105,000 is now crucial. Should Bitcoin fail to sustain this level in the upcoming trading sessions, it might trigger a further decline towards $101,000 over the weekend.