Bitcoin hits technical ceiling: is a drop to $86k next?

Bitcoin’s recent rally is slowing after hitting a highly significant resistance zone. Three clear technical factors suggest a local top may be forming, with a short-term pullback increasingly likely.

Over the weekend, Bitcoin’s price action began to stall after a strong move up over the past couple of weeks. The rejection isn’t happening randomly, it’s occurring at a level packed with technical resistance. If this area continues to hold as a ceiling, it may confirm a local top for now, potentially triggering a correction back to lower levels. Here’s what to watch as the new week begins.

Key technical points

• Channel High Resistance:Price has been rejected right at the top of a long-standing trend channel
• Point of Control:A high-volume node from the November 2024 range is acting as resistance
• Bearish Shark Pattern:A harmonic setup has now activated, hinting at a potential trend reversal

Detailed breakdown

Bitcoin has spent the past week climbing steadily, but that momentum hit a wall at the upper boundary of a trend channel that’s been in place since late 2024. These levels often act as natural turning points, and this rejection could signal that the uptrend is losing steam.

In addition to the channel, Bitcoin is also reacting to the Point of Control from a major range dating back to November 2024. The POC represents the price where the most volume has traded and tends to be a battleground for bulls and bears. Right now, sellers are showing strength at this level.

Lastly, a bearish Shark harmonic pattern has completed at this resistance zone. Harmonic patterns like the Shark are based on Fibonacci symmetry and are known to signal market turning points. While the pattern has activated, full confirmation would come with a breakdown below the recent swing low at $91,648, a level that remains intact for now.

If that low is breached on strong volume, it could trigger a cascade of stop-losses and initiate a deeper correction, possibly targeting the $86,000 range. This would align with the nature of Bitcoin’s recent climb of fast and steep which has left limited structural support beneath.

What to expect in the coming price action

Until key support levels break, the pullback may remain a healthy pause. But if $91,600 is lost, it could mark the beginning of a deeper correction phase. The short-term bias leans bearish as long as Bitcoin holds below resistance. Bulls will need to reclaim the upper zone quickly to regain control of the trend.