Bitcoin (BTC/USD) is having trouble extending its gains above its December highs.

Does this mean we should be on the lookout for a bearish trend reversal?

We’re taking a closer look at the 4-hour chart for clues:

Bitcoin (BTC/USD) 4-hour Chart by TradingView

BTC/USD is off to a rocky start this year, as easing Fed rate cut expectations and uncertainty over Trump’s potential trade policies have pushed USD demand higher.

Meanwhile, the OG crypto has yet to make new highs after hitting fresh record highs under $108,000 in December.

Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!

Luckily for the bulls, there seems to be enough demand around the $92,000 level even after repeated retests.

Are we looking at a downside breakout in the making?

The $92,000 support zone has held strong, but repeated tests have us wondering if a breakdown is in the cards. See, there’s a Head and Shoulders pattern forming, with $92,000 acting as the “neckline.”

Consistent trading below the $90,000 – $92,000 zone sets BTC/USD up for a possible dip to the $84,000 – $87,000 area near the S1 (87,009) Pivot Point and the 100 SMA.

But if the weeks-long technical support holds, and if Trump’s inauguration in the next few days leads to risk and crypto-friendly rallies, then BTC/USD could draw in enough demand to retest the key $100,000 level. We may even see bitcoin make new record highs!

Whichever way you decide to trade this setup, make sure you practice proper risk management and keep an eye out for any shifts in broader crypto market sentiment that could impact price action!