Bitcoin Bulls Urged to Exercise Caution as Price Risks Dip to $91K in Inverse H&S Setup
Bitcoin (BTC) faced significant selling pressure on May 19, plunging over 4.5% intraday to a low of approximately $102,000—its steepest daily decline in over a month. This sharp drop followed a bearish divergence between price and momentum, a technical signal that often precedes trend reversals. Analysts are now sounding the alarm, cautioning traders to be wary of placing long positions amid increasing downside risks.
Failed Breakout and Key Support Levels
According to market analysts at Swissblock, Bitcoin attempted to break above the $104,000–$106,000 resistance range but failed to hold those gains. The price was swiftly rejected, pushing BTC back into a prior volume-heavy zone. Immediate support is now being tested between $101,500 and $102,500.
Source: Bluntz
If this zone fails to hold, analysts identify the $97,000–$98,500 range as the next crucial area to watch. This level corresponds with high historical trading activity and on-chain volume, making it a key battleground for bulls to defend.
Inverse Head-and-Shoulders Pattern Signals Deeper Pullback
On a broader time frame, Bitcoin appears to be forming an inverse head-and-shoulders (H&S) pattern on the three-day chart. This classic bullish reversal pattern typically precedes strong upward moves—but only after a full formation, which may now require a short-term retest of the $91,000 level.
Bitcoin’s price vs. BTC onchain and trading volume. Source: Swissblock
This $91,000 zone aligns with the 50-period exponential moving average (EMA), which has served as reliable dynamic support during past corrections. The failure to close above the pattern’s neckline near $107,000—a level that previously triggered reversals in December 2024 and January 2025—further increases the likelihood of a deeper pullback.
Analysts Caution: “Be Careful with Longs”
Technical analyst Bluntz cautioned traders to "be careful with longs," echoing broader market concerns that bullish momentum may not resume until lower support levels are tested. The current setup suggests Bitcoin could dip toward $91,000 before rebounding for a potential rally.
Should BTC successfully bounce from this support area and reclaim the $107,000 neckline, it would significantly increase the odds of a larger breakout move—possibly targeting $150,000 over the coming months.
Conclusion
While the long-term outlook for Bitcoin remains bullish, the immediate picture shows signs of weakness. With price action failing to hold key resistance and a potential H&S pattern indicating a deeper correction, traders should watch the $97K–$98.5K and $91K levels closely. A failure to defend these zones could delay any significant bullish breakout and increase downside volatility.+
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