Bitcoin Slides to $63K: Is the Short-Term Trend Turning Bearish?

After a sequence of higher highs and higher lows that took the $BTC price all the way to $67K, a recent lower high and lower low may be a sign that the short-term trend is about to change. Could this be the start of a descent into the true bear market bottom?

Head and shoulders top pattern

Source: TradingView

A quick glance at the 4-hour time frame reveals that we have a head and shoulders top. What’s more, the pattern has played out and now the $BTC price has fallen through the neckline, perhaps on its way down to the full extent of the measured move, which the chart tells us would be down to around $60,500.

Be that as it may, this might not be a sharp decline straight down to this level. The price looks as though it has found support at the horizontal level of $63,250. The next move may well be a bounce, and if it is, the bounce could stop short at the neckline of the head and shoulders pattern, making this a confirmation, before heading back down again.

Having said this, the bulls may not be about to throw in the towel just yet. Short-term Stochastic RSI indicators are on their way down to their bottom limits, and once there it may not be too long before they signal upside momentum again. It may just be a case of seeing whether the measured move might play out first.

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