This head-and-shoulders pattern suggests a loss of momentum, with Bitcoin's current support level hovering around $90,000 and a critical pressure point at approximately $93,739.

Legendary trader Peter Brandt has analyzed Bitcoin's price movements and suggests three potential outcomes: a breakdown below the neckline leading to a selloff towards $75,000, a bear trap with a brief dip followed by a sharp rebound, or the evolution of the pattern into a larger structure.

Bitcoin previously reached an all-time high above $100,000, but speculation about future gains and potential declines is now prevalent among investors.

The broader cryptocurrency market is facing uncertainty, influenced by macroeconomic factors that are impacting Bitcoin's upward momentum.

Pressure is mounting for major companies to invest in Bitcoin as a hedge against inflation, with notable interest from firms like Meta considering allocating part of their reserves to Bitcoin.

In the derivatives market, there are signs of optimism, with open interest rising slightly and a marginal improvement in the long-to-short ratio.

Analysts remain divided on Bitcoin's future, with some predicting it could double in value in 2025 due to institutional interest and a favorable regulatory environment.

The bear trap scenario implies that a temporary price dip could mislead investors into bearish sentiment before a significant upward movement occurs.

Currently, Bitcoin is trading at around $94,162, reflecting a slight daily drop and a more substantial decline over the past week and month.

Despite these bearish indicators, the relative strength index (RSI) remains neutral, indicating a lack of clear momentum in either direction.

Brandt emphasizes that while technical patterns can provide insights, they are not definitive and can often change, reflecting the inherent uncertainty in the market.

As of mid-January 2025, Bitcoin is struggling to maintain momentum, having failed to achieve a new all-time high and forming a head-and-shoulders pattern that indicates potential bearish sentiment.