On May 20, the Bitcoin price broke down from an ascending triangle it had been trading in over the past week.
The ensuing upward movement failed at the first resistance level, suggesting that the price is not yet done correcting.
Bitcoin Breakdown
On May 20, the Bitcoin price broke down from an ascending triangle it had been trading inside since May 20. The breakdown occurred with considerable volume, increasing its legitimacy. Since breaking down, the Bitcoin price found support at the $9,350 area and has been gradually retracing since. However, the price has lost the support of the 200-hour moving average (MA) — a bearish development. Based on this time-frame, the price is retracing after the sharp drop, and any price increase should be considered as such.

Double-Top
Moving back to a longer-term chart, we can see that prior to breaking down, BTC created what looks like an ‘Adam and Eve’ double-top, which is considered a bearish reversal pattern. Furthermore, the pattern was combined with a bearish divergence in the RSI. If the price breaks down, the closest support level would be found at $8,600. Interestingly, projecting the height of the pattern to the breakdown level gives us the same target.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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