Bitcoin (BTC) is showing signs of a potential downward slope. On May 12, data from Cointelegraph Markets Pro and TradingView shows that the BTC/USD pair reached its lowest since March 17 at $26,100 on Bitstamp. This evidence suggests that market’s sentiment is weak and bears may have the edge. The current situation was summarized by on-chain monitoring resource Material Indicators as “Welcome to bearadise”.

A “head-and-shoulders” pattern was specifically highlighted as a key development. This type of pattern, which can now be clearly seen on the chart, would have negative implications for the price of Bitcoin if it confirms. The key 200-week moving average (WMA), meanwhile, could be crucial for the direction of the market. Analyst and trader Moustache recently noted that the MA is now potentially at a “make or break level” which has been an important support zone since mid-March.

These bearish technical signals are being combined with more caution from traders. Jelle, who is nominally bullish, conceded that Bitcoin could make a “last stab” at the $25,000 mark before reversing, while a visual representation shared by Cointelegraph showed many were anticipating a descent all the way to that price or lower. Even so, other commentators were still relatively optimistic. Philip Swift, co-founder of Decentrader and creator of LookIntoBitcoin, suggested that the current falling price may not necessarily translate into a major correction due to the presence of a higher long/short ratio. At the time of writing, data from Coinglass showed that the ratio was currently at 58.7% long.

Overall, Bitcoin appears to be in the midst of a bear market and at risk of reaching two month lows, with a number of technical and analytical signals pointing to this. However, whether or not a major correction will occur remains to be seen. In either case, it is always important to conduct proper research before making any kind of investment decision.



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