May 08 Technical Analysis: Bitcoin (BTC) Heading for a Bearish Week?

The queen of crypto suffers a drop over the weekend as memecoins shake up the crypto industry. Bitcoin (BTC) could experience a bearish week towards $26,556.

Bitcoin (BTC) in the middle of “memecoin season”

The flagship crypto goes into the red for this month; as the memecoin craze shakes the markets. Indeed, the meteoric rise of these meme-inspired cryptos seems to be driving downside pressures on the two biggest cryptos. Bitcoin (BTC) fell more than 4.5% over the weekend after a weekly close in the green. On the other hand, ETH is down more than 7% since Saturday and XRP is down 5%.

However, no major trend change can be observed in the price of BTC. Indeed, its price remains in the price range between $29,969 and $27,664. Nevertheless, a bearish week is possible on bitcoin (BTC) while the May 05 short position is currently in the green. Thus, the price could probably go down towards $27,143. However, the long-term structure remains bullish as long as the support at $26,556 remains intact.

Bitcoin bearish week
Bitcoin (BTC) candlestick chart, Daily scale – source: TradingView

If the memecoin season continues, we can consider further declines in bitcoin (BTC). However, the meteoric rise of these crypto memes likely precedes a dump. In this case, BTC could, in turn, experience a meteoric rise. At the moment, the queen of cryptos is stabilizing around $28,000, allowing investors to hoard.

A sell position?

The bearish pressure from the weekend can give us an indication of the probable direction of bitcoin (BTC) this week. Indeed, we can see a break in the structure in the short term with this drop. Thus, one could consider a retracement towards $29,300, before a drop below $27,133.

Bitcoin bearish week
Bitcoin (BTC) candlestick chart, H2 scale – source: TradingView

If this is confirmed, selling BTC at $29,300 could be interesting. However, the breakout of the weekend high will invalidate this bearish thesis. In this case, bitcoin (BTC) could create a new high above $31,100.

Admission: $29,300;

Stop: $29,875;

Goal: $27,133.

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