Bitcoin (BTC) may be on the verge of a fresh bearish phase as technical indicators flash warning signs while the asset remains in consolidation.
In this context, an outlook by TradingShot in a May 27 TradingView post suggested the bearish signal stems from Bitcoin forming a Head and Shoulders pattern, indicating weakening momentum after the cryptocurrency failed to break above a key long-term resistance level.
The analysis noted that Bitcoin was rejected at the 200-day moving average (MA), a level that has historically acted as resistance during past bear market cycles.
Following the rejection, BTC also fell below its 50-day moving average, increasing the risk of further downside pressure in the medium term.
Bitcoin price analysis chart. Source: TradingView
The bearish setup is taking shape through a classic Head and Shoulders structure, with the left shoulder and head already formed, while the right shoulder appears close to completion.
In technical analysis, the patter
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