The Bitcoin (BTC) price broke down from a long-term pattern on May 10. After validating it as resistance on May 23, the rate of decrease accelerated sharply.
While a short-term bounce could occur, the price action and wave count in the daily time frame suggest that there is more downside until BTC bottoms out.
Bitcoin Price Resumes Descent After Breakdown
The technical analysis from the daily time frame shows that the BTC price broke down from a head and shoulders pattern. This is considered a bearish pattern. Thus, the breakdown was expected.
After the May 10 breakdown, the price hovered just below the pattern’s neckline for roughly two weeks. Afterward, it validated the line as resistance (red icon) on May 23 and fell sharply.
This confirmed the validity of the breakdown.
Furthermore, the RSI gives a bearish reading. Market traders use the RSI as a momentum indicator to identify…
