TL;DR
- Bitcoin rebounded to near $104,000, but recent bearish head-and-shoulders breakdown remains intact
- Immediate support at $100K and $95.5K, while a break above $107K is needed to shift to a bullish setup
- Technical indicators signal a potential pullback before any sustained rally
Bitcoin rallied to just under $104,000, buoyed by equity futures gains and profit-taking from earlier shorts. Yet, technical patterns suggest this bounce may be short-lived as the recent head-and-shoulders (H&S) breakdown remains valid.
Technical Breakdown: Head‑and‑Shoulders Pattern
On Thursday, analysts identified a bearish H&S pattern on Bitcoin’s hourly chart—a classic reversal formation signalling a shift from bullish to bearish. After the downside neckline was broken, BTC briefly bounced back for profit-taking before confronting fresh seller pressure at the breakdown point .
As the sentiment stands, BTC is “not out of the woods yet.”
Support and Resistance Levels to Watch
- Immediate Support: $100,000 (psychological) and $95,500 (measured from pattern height)
- Resistance to Overturn Bearish Bias: A clear break above $107,000 is needed to invalidate the H&S and open the path to recent highs.
Why This Matters to Traders
H&S patterns tend to set expectations early. Initial bounces often attract fresh short sellers who waited out the breakdown. Those who shorted initially closed positions, creating a bounce — but fresh resistance at the neckline usually pushes prices lower again. BTC’s recovery to $104K aligns with this pattern’s “retest” behavior.
BTC Technical Snapshot
| Indicator | Level / Insight |
| Price on June 6, 2025 | ~$103,975 |
| Neckline Level | ~$104,000 |
| Support Levels | $100,000; $95,500 |
| Breakout Threshold | $107,000 (bull invalidation) |
| Pattern Type | Head‑and‑Shoulders breakdown |
| CoinDesk technical analysis |
Wider Market Context
The price bounce coincided with a modest uptick in U.S. equity futures, aligning with a broader risk-on phase. However, until BTC breaks above $107K, bearish setups remain dominant in technical frameworks.
Forecast: Pullback Likely Before Rally
A bearish H&S breakdown retest often precedes deeper pullbacks—or at best, sideways movement—until upside momentum builds decisively. Should BTC fall below $100K, a retest of the $95.5K target may occur.
Conclusion
The rally toward $104K reflects hopeful sentiment, but it doesn’t erase a bearish technical setup. Traders should keep a close eye on the $104K–$107K zone—only sustained movement through there can signal a fresh bull-run reversal. Until then, traders should prepare for potential consolidation or a renewed pullback.
