As Bitcoin (BTC) continues to trade sideways, failing to overcome any significant resistance for another week, more trouble could be ahead as the flagship decentralized finance (DeFi) asset positions itself for a downside, waiting for just one more signal to continue dropping further.
Indeed, Bitcoin has performed another weekly close below $27,600, which means it has fully confirmed the breakdown from this level, according to an analysis shared by pseudonymous cryptocurrency market analyst Rekt Capital on May 22.
Furthermore, the expert explained that sell-side volume was the only thing missing for the other shoe to drop and prompt an even deeper downside for Bitcoin, where it has technically already positioned itself, as the chart pattern analysis suggests.
Picks for you
Earlier, when Bitcoin was also still rejecting from the above level, Rekt Capital said that “as long as it continues to act as resistance, there is a threat of an even stronger rejection to prompt extra downside” in a tweet shared on May 19.
On May 18, the analyst announced that a one-week close below $27,600 would double-confirm a breakdown from it and could set BTC up for downside continuation, whereas reclaiming this level would give it a chance at bullish momentum.
Bitcoin price analysis
Meanwhile, Bitcoin was at press time changing hands at the price of $26,865, demonstrating a decline of 0.84% on the day and 1.89% across the past week, as well as losing 1.39% on its monthly chart, according to the recent data retrieved on May 22.
As Finbold reported on May 20, Bloomberg’s senior commodity strategist Mike McGlone suggested Bitcoin might be about to establish a new bear market low amid the period of turbulence as the stock market underwent a downward trajectory.
Interestingly, Bitcoin’s 60-day volatility has dropped to a historically significant range of 40%, and chart patterns over the last five years indicate that a price increase of about 46% could follow, although caution is necessary as it has not always been the case.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
