Bitcoin ($BTC) may be on the verge of a fresh bearish phase as technical indicators flash warning signs while the asset remains in consolidation.
In this context, an outlook by TradingShot in a May 27 TradingView post suggested the bearish signal stems from Bitcoin forming a Head and Shoulders pattern, indicating weakening momentum after the cryptocurrency failed to break above a key long-term resistance level.
The analysis noted that Bitcoin was rejected at the 200-day moving average (MA), a level that has historically acted as resistance during past bear market cycles.
Following the rejection, $BTC also fell below its 50-day moving average, increasing the risk of further downside pressure in the medium term.
The bearish setup is taking shape through a classic Head and Shoulders structure, with the left shoulder and head already formed, while the right shoulder appears close to completion.
In technical analysis, the pattern is widely viewed as a reversal signal that often precedes extended declines once support breaks.
According to the analysis, Bitcoin is trading near $75,800 while hovering around the neckline support of the pattern. A decisive breakdown below this level could confirm the bearish setup and trigger a move toward roughly $65,600.
The target aligns with the 2.0 Fibonacci extension level and the upper boundary of Bitcoin’s first major support zone, where buyers could attempt to stabilize prices.
The outlook also identified broader support extending into the low-$60,000 range if selling pressure intensifies.
At the same time, momentum indicators point to weakening market structure, with Bitcoin remaining below the descending 200-day moving average and recovery attempts fading after the rejection near the head formation.
If confirmed, the setup could mark the beginning of another bearish leg for Bitcoin following months of volatile consolidation.
Bitcoin price analysis
By press time, Bitcoin was trading at $75,711, down almost 2% over the past 24 hours. On the weekly chart, $BTC also remained in the red.
Overall, Bitcoin remains under pressure, trading below its 50-day SMA of $77,097 and 200-day SMA of $80,301, signaling a bearish market structure.
Meanwhile, the 14-day RSI at 42.91 remains in neutral territory but below the key 50 level, indicating weak buying momentum and a market still tilted toward downside pressure.
