Bitcoin Faces Key Test at $104K Following Breakdown; Market Watches for Confirmation or Failure

Bitcoin (BTC) has rebounded to the $104K region following a breakdown from a classic head-and-shoulders (H&S) pattern earlier this week, but the bounce may be fleeting. The move appears to be a standard retest of the neckline — a key zone now acting as resistance.

Technical Breakdown:

• Pattern: H&S formation on the 1-hour chart, with breakdown confirmed below the neckline around $104K.
• Retest in Progress: BTC is currently testing that neckline from below — a textbook backtest often seen before continuation lower.
• Volume Profile: The breakdown occurred on increasing volume, while the retest bounce shows weaker buying — a bearish divergence worth noting.
• Target Projection: If the H&S plays out fully, the implied move targets the $95.5K–$96K zone.
• Invalidation Level: A close above $107K would nullify the bearish setup and re-open upside potential.

Strategy Snapshot:

• Short Bias: Bears may look to re-enter at $104K–$105K if rejection confirms.
• Neutral-to-Bearish: Sideways chop is possible, but bias remains tilted lower unless bulls reclaim $107K.
• Watch Zones: Support at $100K (psychological), deeper support at $97.5K and $95.5K.

BTC’s structure has weakened in the short term, and the market’s response to this neckline retest will likely define direction over the next few sessions.