Technical analysis shows Bitcoin’s drop may extend to near $54,000 after breaking key support levels and forming reversal patterns.
Bitcoin fell 4.8% on Thursday, sinking to an intraday low near $58,000 and wiping out its June gains. The decline completed a rounded top pattern on the four-hour chart, a bearish reversal formation signaling a potential shift to a downtrend.
Analysts project a measured move to just under $54,000, an 8.9% drop from current levels, based on the pattern’s structure. A simultaneous bear flag breakdown on the daily chart reinforces the downside target, aligning with on-chain price bands.
The breakdown occurs after Bitcoin failed to sustain momentum above $60,997, with support now seen at $53,390. Traders are watching for confirmation of the next leg lower.