Bitcoin ($BTC) We could enter a new bearish phase as technical indicators flash warning signs while the asset remains consolidated.
In this regard, the following outlook is trading shots on may 27th TradingView The post suggested that the bearish signal stems from Bitcoin forming a head-and-shoulders pattern, indicating weakening momentum after the cryptocurrency failed to break out of a key long-term resistance level.
The analysis noted that Bitcoin was rejected at its 200-day moving average (MA), a level that has historically served as resistance during past bear market cycles.
After receiving a rejection, $BTC The 50-day moving average has also fallen below, increasing the risk of further downward pressure in the medium term.
Bearish’s setup is taking shape through a classic head-and-shoulders construction, with the left shoulder and head already formed, while the right shoulder appears to be nearing completion.
In technical analysis, this pattern is widely seen as a reversal signal that often precedes a long-term decline after support is broken.
According to our analysis, Bitcoin is trading near $75,800 while hovering around the neckline support of the pattern. A decisive break below this level could confirm a bearish setup and trigger a move towards around $65,600.
This target coincides with the 2.0 Fibonacci extension level and the upper bound of Bitcoin’s first major support zone, allowing buyers to attempt to stabilize the price.
The outlook also identified broad support extending into the low-$60,000 range if selling pressure increases.
At the same time, momentum indicators are pointing to weakening market structure, with Bitcoin still below its declining 200-day moving average and any attempts at recovery fading after a near-head rejection.
If confirmed, this setup could mark the beginning of a new bear market for Bitcoin following months of volatile price action.
Bitcoin price analysis
At the time of writing, Bitcoin was trading at $75,711, down about 2% over the past 24 hours. On the weekly chart, $BTC remained in the red.
Overall, Bitcoin remains under pressure and is trading below its 50-day SMA of $77,097 and 200-day SMA of $80,301, indicating a bearish market structure.
Meanwhile, the 14-day RSI is in neutral territory at 42.91, but below the key 50 level, indicating weak buying momentum and the market still leaning towards downward pressure.
