BTC Crash Incoming?! 😱

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Most Grave Considerations:

  • Bitcoin, alas, did suffer a decline of over 4.5% on this past May the 19th, thereby confirming a most unwelcome bearish divergence, and threatening a descent below the seemingly impregnable fortress of $100,000. One shudders to think! 😨

  • The analysts, with their charts and graphs, do highlight the range of $97,000–$98,500 as a key support, which the bulls (a rather optimistic term, wouldn’t you agree? 🤨) must endeavor to maintain, lest all be lost.

  • A potential inverse head-and-shoulders pattern (a most peculiar name, if I may say so myself) does point to a retest of $91,000 before any bullish continuation might dare to occur. One can only hope, though hope, as we know, is a dangerous thing. 🙏

Bitcoin (BTC), that fickle mistress of the financial world, is down over 4.5% from its intraday high on May 19, falling to around $102,000 in what they call its worst daily drop in over a month. One wonders if such volatility is quite becoming of a serious investment. 🤔

BTC’s drop, it seems, did accompany similar misfortunes in the wider risk market, all prompted by Moody’s latest downgrade of the US government. Due, one presumes, to a rising budget deficit and the distinct lack of a credible fiscal consolidation plan. Oh, the woes of governance! 🏛️

This decline, they say, confirms a bearish divergence and, combined with other such technical fripperies, raises the risk of a BTC price breakdown below $100,000, a key support level. One might be forgiven for thinking that the entire enterprise is built on sand. 🏖️

Bitcoin’s bearish divergence hints at sub-$100K

Bitcoin’s price action showed technical weakness ahead of its May 19 sell-off. As if it were a delicate flower about to wilt. 🥀

On May 19, BTC pushed to a new local high above $107,000, but its relative strength index (RSI) printed a lower high, confirming a classic bearish divergence. One might say it was all rather predictable. 🙄

This discrepancy between price and momentum is often a precursor to a trend reversal, and in this case, it played out with a swift 4.5% intraday decline. Analyst Bluntz (a rather apt name, perhaps? 🔪) warned traders to “be careful with [placing] longs.” A warning, no doubt, heeded by very few.

Swissblock analysts observed that Bitcoin “grabbed liquidity” above the $104,000–$106,000 resistance range but failed to sustain a breakout. A most ignominious failure, wouldn’t you say? 😩

The rejection pushed the price back into a prior volume-heavy zone, with immediate support between $101,500 and $102,500 now under pressure. One fears for the stability of the entire edifice. 🏚️

Swissblock identifies the $97,000–$98,500 range as a key downside target based on historical onchain volume and trading activity if the $101,500-102,500 area fails to hold. A rather precarious situation, indeed. 🪢

Bitcoin’s H&S pattern targets $91,000

On the three-day chart, Bitcoin is forming the right shoulder of a potential inverse-head-and-shoulders pattern. A rather macabre image, if one dwells on it for too long. 💀

While typically bullish in the long term, this setup implies a short-term retest of the 50-period exponential moving average (50-period EMA; the red wave) near $91,000. A prospect that is, to put it mildly, unsettling. 😬

The chances of such a drop have increased since BTC failed to close above the critical $107,000 neckline level, the same zone that triggered bearish reversals in December 2024 and January 2025. History, it seems, does have a habit of repeating itself. 📜

A rebound from the $91,000 zone toward the neckline at around $107,000 could increase Bitcoin’s odds of rising toward $150,000. A possibility, however remote, that one clings to with the tenacity of a drowning man grasping at a straw. 🚣

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2025-05-19 11:42