As the cryptocurrency market continues its sideways trading, Bitcoin (BTC) is leading the bearish charge, forming a ‘textbook’ example of the head and shoulders pattern that indicates more pain could be in store for the flagship decentralized finance (DeFi) asset.
Specifically, Bitcoin had started the formation of the ‘left shoulder’ in early April, followed by the ‘head’ in late April and early May, and the ‘right shoulder’ in early May, as observed by the crypto and finance chart analyst Game of Trades in a tweet published on May 8.
In this context, Bitcoin bears could continue to show strength over bulls, and the maiden cryptocurrency might see a further decline in price, as “a confirmed breakdown will have an implied target near the $24k region,” according to the expert’s analysis and chart patterns.
In addition to the above pattern, the analyst said that the excess optimism and bearish momentum were all indicating that “Bitcoin is likely setting up for more downside” in a follow-up tweet and accompanying chart that includes the moving average convergence divergence (MACD) indicator.
Bitcoin price analysis
In the meantime, Bitcoin is currently changing hands at the price of $27,585, down 0.78% in the last 24 hours, as well as recording losses of 1.92% across the previous seven days and a 1.37% drop in the last month, as per data retrieved on May 9.
On top of the above chart patterns, the largest digital asset has been showing signs of contraction, which could also contribute to a potential price drop, as Finbold reported on May 8. Should the bleak outlook prevail, the expectations of gold outperforming Bitcoin in the unfolding recession could indeed materialize.
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