In recent days, Bitcoin's price has come under significant pressure, with analyst Gordon declaring that the long-anticipated crash of the cryptocurrency has now begun.
Head and Shoulders Pattern Signals Trouble
Gordon presented a technical analysis showing a classic Head and Shoulders formation—a well-known bearish reversal pattern. This structure includes a left shoulder formed in February, a higher peak or 'head' in April, and a right shoulder formed by June. The key support level around $112,000 was decisively broken in late July.
Price Action Confirms Bitcoin Sell-Off
As of report time, Bitcoin is trading around $114,700, having lost more than 6% from its July high of $122,838. In the past 24 hours alone, the cryptocurrency is down approximately 3.2%. Price action confirms that bulls are rapidly losing ground, with the resistance zone at $112,000 proving too strong for bulls to overcome.
Macroeconomic Risks Amplify Bearish Sentiment
The technical setup isn't the only factor weighing on Bitcoin. The broader macroeconomic environment is contributing to the decline. Recent U.S. trade policies under President Donald Trump have rattled global markets, impacting crypto assets negatively. The renewed trade tensions have prompted risk-off behavior, causing investors to move capital away from volatile assets like Bitcoin.
Overall, the bearish trend of Bitcoin is expected to continue downward unless significant market changes occur.
