Microsoft’s graph looks dangerous. Is this the omen of an AI and crypto crash?

Besides the geopolitical tensions between Iran and the United States, rising interest rates (in both the United States and Europe), and increasing inflation due to energy prices, there is another data point pointing to a possible stock market crash (which would, of course, also cause a crypto crash). Technically speaking, Microsoft’s weekly chart looks very dangerous. Allow me to explain.

Magnificent Seven

While we will likely soon have to add SpaceX (due to its size), the technology stock market is still largely driven by the graphs of the so-called Magnificent Seven, namely Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla. This year, however, the biggest gains are reserved for Micron and Sandisk, which build AI data centers for those Magnificent Seven companies.

Microsoft $MSFT could be targeting $230.

On the weekly chart, Microsoft appears to be carving out the right shoulder of a multi-month head and shoulders reversal pattern. This structure signals a potential top after its major macro uptrend.

The critical baseline for this setup… pic.twitter.com/7Os9uJ8XLh

— Ali Charts (@alicharts) June 20, 2026

However, there is a ‘but’ this year, as many analysts fear an AI bubble. The so-called canary in the coal mine of that bubble could well be Microsoft’s weekly chart. Founder Bill Gates’ stock is performing significantly worse this year and, on the weekly chart viewed as from 2021, appears to form the right shoulder of a so-called ‘head and shoulders’ pattern.

Will this become the mother of all head and shoulders patterns and spell the beginning of a significant correction in U.S. tech and AI stocks? $MSFT
Just asking.
Stunted right shoulders can be all the more negative pic.twitter.com/4mkUanVea1

— The Factor Report (@PeterLBrandt) June 17, 2026

If that is correct, the price will drop by about 25% in the coming months and likely take the other Magnificent Seven stocks down with it.

In such a scenario, Bitcoin would find support around the $54,000 mark and, in the worst-case scenario, around $40,000.