Bitcoin Enters $26K ‘bearadise’ As BTC Price Nears 2-Month Low
Bitcoin (BTC) neared two-month lows on May 12 on fears that a “head-and-shoulders” pattern would put the bears ahead.
Analysis of BTC Price: “Welcome to bearadise”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $26,100 on Bitstamp – the lowest since March 17.
“Welcome to bearadise,” summarized monitoring resource material indicators in the chain.
A chart uploaded to Twitter the previous day showed key buying support now around $25,750, with BTC/USD eating liquidity higher overnight.
On daily time frames, concerns among market participants focused on whether the pair would now hold lower after three local peaks.
This “head-and-shoulders” pattern, which is now clearly visible on the chart, will set a negative precedent if confirmed.
“We simply cannot let the #Bitcoin head and shoulders crowd win,” financial commentator Tedtalksmacro insisted.
“Back above $27k, things will get very interesting…”
Trader and analyst Mustache, meanwhile, showed that it was already time for the key 200-week moving average (WMA) to receive a retest.
A “make or break” level, the 200 WMA has acted as support since mid-March.
As Cointelegraph reported, several traders were already looking for a deeper retracement to $25,000 or lower.
These included the nominally bullish Jelle, who admitted that day that Bitcoin may make a “last stab” at the $25,000 mark before reversing.
He noted that relative strength index (RSI) readings did not serve sellers well on low timeframes.
“Bitcoin nuked right through support, next big zone of interest is around 24-25k,” he tweeted.
“RSI is failing to push into the extremes, suggesting sellers are getting exhausted. A final push into 25k that is quickly bought up would make sense.”
Longs get bolder as BTC price drops
More confident that the worst losses would soon be over was analyst Philip Swift, co-founder of trading suite DecenTrader and creator of the data resource LookIntoBitcoin.
Related: Bitcoin Price Could ‘Easily’ Reach $20K In Next 4 Months – Philip Swift
In a tweet, he noted that while the price has fallen, the long/short ratio has diverged, with long positions now prevalent.
Additional data from Coinglass put the long/short ratio at 58.7% long at the time of writing on May 12.
Blade: Unstable coins: Depegging, bank runs and other risks loom
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
