Bitcoin News Today: Bitcoin breaks key technical pattern faces potential 50% drop to $60,000

Bitcoin faces mounting bearish pressure as analysts warn of a potential extended downturn following a confirmed breakdown of a key technical pattern. Prominent analyst Gordon highlighted the formation and breakdown of a classic Head and Shoulders reversal pattern, signaling a significant drop in price potential. The pattern, which includes a left shoulder in February, a head in April, and a right shoulder in June, saw the neckline at $112,000 decisively broken in late July. After a failed retest of this level, Bitcoin began a sharp decline, reinforcing the bearish outlook [1].

Current price action further confirms the breakdown. Bitcoin is trading around $114,700, down more than 6% from its July high of $122,838. In the last 24 hours, the cryptocurrency has lost approximately 3.2%, with each attempt to reclaim key support levels being rejected. The $112,000 zone, now acting as resistance, has proven too strong for bullish buyers to overcome. A daily close below $114,000 could accelerate selling pressure as traders react to the confirmed pattern collapse [1].

Macroeconomic factors are also amplifying bearish sentiment. Recent U.S. tariff policies under President Donald Trump have triggered broader risk-off behavior, pushing investors away from volatile assets like Bitcoin. Additionally, fading expectations of a near-term Federal Reserve interest rate cut have reduced institutional interest, compounding the downward pressure on the cryptocurrency. As economic uncertainty rises, liquidity in speculative markets is waning, making Bitcoin more vulnerable to sharp corrections [1].

Further analysis from mid-July suggests that the bullish cycle is nearing its end. Analyst Xanrox predicts a potential 50% drop in Bitcoin’s price to as low as $60,000, based on current market dynamics and technical indicators [2]. Another report from late July notes that Bitcoin’s price has fallen below $120,000, with weak seasonal trends and dwindling inflows increasing the likelihood of further declines [4].

Technical indicators are also flashing bearish signals. The weekly RSI is showing a divergence between price and momentum—patterns historically seen before major market tops. If this trend continues, Bitcoin could retrace toward the 50-week EMA, currently around $92,000 [9]. Additionally, the Net Unrealized Profit/Loss (NUPL) metric indicates over 92% of Bitcoin supply is in profit, suggesting heightened sell-side pressure. Historical cycles in 2020, March 2024, and January 2025 saw sharp corrections following similar conditions [9].

While some bullish analysts suggest Bitcoin could still reach $150,000 in the next three months, the growing number of bearish signals cannot be ignored. Key support levels such as $115,000 are now critical, and a break below this could trigger further sell-offs pushing the price toward $104,000 or even $92,000 [9]. For now, the market appears to have shifted to a bearish bias, with the path of least resistance clearly downward unless Bitcoin can reclaim the $116,000–$118,000 range in the near term [1].