Bitcoin slid to $63,000 on Thursday after a textbook head-and-shoulders pattern broke down on the 4-hour chart. The measured move from the formation points to a possible decline toward $60,500 if the current support level doesn't hold.
Pattern breakdown on the 4-hour chart
The head-and-shoulders top formed over recent days, with the neckline breaking to the downside. Bitcoin found temporary support at the horizontal level of $63,250, but the pattern's measured move targets a drop to around $60,500. That's a roughly 4% further decline from current levels.
Daily chart shows a lower high
The daily chart reinforces the bearish tilt. Bitcoin printed a lower high at $67K compared to the mid-June peak, and failed breakouts from a descending channel. The RSI on the daily timeframe shows a wedge pattern that appears to be breaking down, with the indicator line now below the bottom trendline. That's a classic sign of weakening momentum.
Weekly oscillators roll over
The weekly Stochastic RSI indicator lines are rolling over — a move that has preceded significant price crashes in the past. The weekly candle is red and threatening to break below the $63K support level and the bull market trendline. If that support gives way, the path to $60,500 becomes more likely.
Short-term signals hint at a bounce
Not all signals are bearish. Short-term Stochastic RSI indicators are approaching their bottom limits, which could signal upside momentum after a potential bounce. A relief rally from current levels isn't out of the question, but the broader technical picture remains fragile. Traders are watching whether $63,250 holds as support or becomes resistance.
