Figure:https://www.gate.com/trade/BTC_USDT
As of July 8, 2025, the current price of Bitcoin is $108,300.7. Driven by multiple positive news and institutional inflows, the price is expected to fluctuate within the range of $108,000–$110,000 in the short term. However, the latest analysis from TradingView indicates that if the price falls below the support level of the right shoulder at $96,000, it could trigger a significant correction signal, with potential downside nearing 12% or more.
Market Overview
Recently, the Bitcoin market has remained strong overall, influenced by dual factors of macro interest rate expectations and hedging demand against inflation. The continuous decline in U.S. inflation data, coupled with several major institutions announcing plans to increase positions, has led to a replenishment of buying pressure. However, above $110,000, selling pressure has intensified, resulting in a tug-of-war between buyers and sellers in this range.
What is a head and shoulders pattern?
The Head and Shoulders is a classic reversal pattern, consisting of three parts: the left shoulder, the head, and the right shoulder, with the head being higher than the two shoulders. The neck line connects the low points of the two shoulders. Once the price falls below the neck line, it signifies a trend reversal from bullish to bearish, forming a typical signal of a “price big dump trigger.”
Key Points of Technical Analysis
- Neckline position: The current neckline is around $96,000, which is the area connecting the two recent lows.
- Volume observation: It is observed that when the head is formed, the trading volume significantly increases; during the formation stage of the right shoulder, the trading volume decreases, which is consistent with the characteristics of the head and shoulders top pattern.
- ATR Indicator: The ATR (Average True Range) indicator, which measures volatility, shows that if it falls below the neck line, the intraday volatility is expected to reach $4,000–$5,000.
- RSI Divergence: The RSI shows a clear top divergence, indicating that bullish momentum is weakening and the risk of a fall is sharply increasing.
Risk and Response Strategies
- Stop loss setting: If participating in short-term trading, the stop loss can be set above the neckline at 98,000 USD, controlling risk at around 2%.
- Dollar-cost averaging: When the price falls to the range of 100,000–96,000 USD, consider gradually placing short positions; if it further drops below 96,000 USD, add to the short.
- Long and short switch: If the price returns above $104,000 with increased trading volume, one should promptly close short positions and pay attention to whether a new upward trend is forming.
Conclusion
“Bitcoin Price Crash Trigger To $96000” signal has high reference value. New investors should focus on the support strength at the neckline of $96,000, and reasonably set stop-loss and position-building strategies in conjunction with trading volume and momentum indicators. Remember that in a high volatility environment, it is essential to maintain capital management and risk awareness to remain undefeated in the ever-changing digital asset market.
