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Take this Bitcoin technical pattern seriously, veteran trader says

By:
on May 11, 2023
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  • Bitcoin price dipped below $27,000 again on Thursday, trading to lows of $26,775.
  • Veteran trader Peter Brandt has pointed to a trend reversal pattern that could see BTC dip further.
  • A breakdown amid broader weakness could risk a retest of multi-month lows.

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With Bitcoin price failing to hold key support at $28,000 once again after Wednesday’s uptick, bears have taken advantage to push prices below $27k. BTC is trading near $26,830 as bulls look to return to the $27k level.

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The technical outlook for BTC suggests bulls risk giving up more ground to determined bears if a head and shoulders pattern forming on the daily chart is confirmed. In a tweet earlier today as BTC struggled for upside momentum, Peter Brandt shared a chart of Bitcoin price showing the H&S pattern on the daily timeframe. He noted:

“A head and shoulders should be taken seriously if it is completed $BTC.”

What next for BTC if the price dips further?

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In technical analysis, a head and shoulders pattern is taken to signal a trend reversal. In this case, a bullish-to-bearish reversal that suggests the coin’s upward trend is fizzling. With a local top in place, this trend reversal pattern historically signals further declines.

At the time, Bitcoin traded around $27,549, which puts current prices below the pattern’s neckline.

Crypto analyst Altcoin Sherpa says the downside could be much deeper, and shared a chart showing the potential retreat to the psychological support zone at $20,000.

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