Bitcoin Bears Regain Control as Key Support Gets Tested

In today’s technical analysis, we’re taking a closer look at Bitcoin, which appears to be approaching a potentially dangerous technical setup. After an encouraging bullish correction that began on April 9th, the momentum has faded, and the chart is now revealing bearish pressure building up.

A key development here is the failed breakout above the blue downtrend line, which had been acting as a significant resistance for weeks. This attempt to break higher was short-lived and is now clearly marked by a false breakout, highlighted in yellow on the chart. False breakouts like this are often strong signals that the prevailing trend—in this case, bearish—may soon resume.

Adding to the concern, Bitcoin has formed a double top formation, which is a classic bearish reversal pattern. The neckline of this formation is marked with a green line. This support level has so far held, but it’s under heavy pressure. A 4-hour candle close below this green neckline would confirm the double top pattern and trigger a strong sell signal. Should that happen, the next target for the price would be the orange horizontal support, a key area where Bitcoin found buyers earlier this year.

As long as the price remains below the blue downtrend line and continues to test the neckline, the sentiment remains negative. The sell signal will be invalidated only if the price manages to climb back and close significantly above the blue resistance line, but at this point, that scenario looks less likely.

For now, traders should keep a close eye on the neckline area. A confirmed breakdown could signal the start of a new bearish wave for Bitcoin, potentially pushing the price toward the next long-term support level. Stay cautious—Bitcoin might be gearing up for a deeper correction.

Source: https://www.axiory.com/analytics/technical-analysis/bitcoin-bears-regain-control-as-key-support-gets-t