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<p><a href="https://www.cryptopolitan.com/news/bitcoin-btc/?swcfpc=1V">Bitcoin price</a> analysis shows BTC has been trading in a bearish pattern for most of the day after opening the daily trading session at $27,310.14; the coin has moved downwards and is currently trading at $27,139.71.Technical analysis suggests that the cryptocurrency is at risk of falling below $25,000 in the short term. The head-and-shoulders (H&amp;S) pattern confirms three peak formations atop a common support level. A decisive break below the H&amp;S support level near $27,500 could see the price fall as much as the pattern&#8217;s maximum height, i.e., the distance between the head and support level, resulting in a potential 10% drop by June.</p>



<figure class="wp-block-image size-full is-resized"><img decoding="async" src="https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-351.png" alt="image 351" class="wp-image-301984" width="782" height="542" srcset="https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-351.png 699w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-351-300x208.png 300w" sizes="(max-width: 782px) 100vw, 782px" /><figcaption class="wp-element-caption">BTC/USD daily chart: <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="nofollow noopener" target="_blank">Coin market cap</a></figcaption></figure>



<h2 class="wp-block-heading" id="buffett-8217-s-move-adds-pressure-to-bitcoin-a-stock-market-crash-is-possible-due-to-its-correlation-with-equities">Buffett&#8217;s move adds pressure to Bitcoin; a stock market crash is possible due to its correlation with equities.</h2>



<p>Bitcoin&#8217;s price has continued its downward trend, dipping below $28,000, with traders eyeing the United States Consumer Price Index (CPI) print for April on May 10 as a potential source of volatility. Legendary investor Warren Buffett&#8217;s recent move to increase cash holdings by $2 billion in Q1 and reduce his exposure to risk assets such as stocks has added to the downside pressure on Bitcoin.</p>



<p>Buffett&#8217;s Berkshire Hathaway dumped $13.30 billion worth of equities in Q1, suggesting a possible stock market crash in the near future. With Bitcoin down for the fourth consecutive day and its price highly correlated with equities, there is a possibility that BTC investors may also need to prepare for a potential stock market crash.</p>



<p>Furthermore, the increasing possibility of a global recession puts additional downside pressure on Bitcoin, with its 100-week correlation with the Nasdaq reaching its highest level of about 0.42%. Twitter-based Market analyst Mike McGlone believes that Bitcoin&#8217;s price could be the leading indicator for a stock market crash, and if the worst is not yet over for risk assets, Bitcoin may lead the way lower. McGlone noted that Bitcoin is up about 70% from 2023 to May 2 compared to a 20% rise in the stock index, but these may be bounces within broader bear markets.</p>



<p>In the short term, the April US Consumer Price Index report, scheduled for release on May 10, is expected to show inflation remaining unchanged at around 5%, with more rate hikes anticipated. However, a significant drop in inflation could prompt the Federal Reserve to consider pausing or even slashing interest rates, which may pour cold water on Buffett&#8217;s risk-off strategy. Fed funds futures data suggests that at least five rate cuts between May 2023 and January 2024 are likely.</p>



<h2 class="wp-block-heading" id="btc-usd-price-analysis-on-a-daily-and-4-hour-chart-btc-bounces-off-key-support-at-27-310">BTC/USD price analysis on a daily and 4-hour chart: BTC bounces off key support at 27,310</h2>



<p>Bitcoin price analysis on the daily chart indicates BTC/USD has formed descending triangle pattern, which indicates bear sentiment. The pair trades its 20-day Exponential Moving Average (EMA) and 50-day Simple Moving Average (SMA). Bitcoin is trading at $27,561.71 after a period of sideways price movement witnessed since the beginning of the day.</p>



<figure class="wp-block-image size-full"><img decoding="async" width="1086" height="666" src="https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-353.png" alt="image 353" class="wp-image-301987" srcset="https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-353.png 1086w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-353-300x184.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-353-768x471.png 768w" sizes="(max-width: 1086px) 100vw, 1086px" /><figcaption class="wp-element-caption">BTC/USD 4-hour chart, Source: <a href="https://www.tradingview.com/chart/YgGk5lSa/?symbol=COINBASE%3ABTCUSD" target="_blank" rel="noopener">TradingView</a></figcaption></figure>



<p>On the four-hour chart, BTC/USD has bounced off a crucial support level at $27,310 and is currently trading above it. This chart&#8217;s Relative Strength Index (RSI) indicator shows that Bitcoin&#8217;s price could make a bullish crossover on the 50 levels. The MACD indicator shows that the pair is in a bearish zone while the histogram has flattened and is below the line, suggesting sideways price action.</p>



<h2 class="wp-block-heading" id="bitcoin-price-analysis-conclusion">Bitcoin price analysis conclusion</h2>



<p>Bitcoin&#8217;s price has been trending downwards, with technical analysis suggesting a potential short-term drop below $25,000 due to the H&amp;S pattern&#8217;s confirmation. Warren Buffett&#8217;s recent move to increase cash holdings and reduce exposure to risk assets such as stocks has added to the downside pressure on Bitcoin.</p>



<p>Its highly correlated nature with equities suggests BTC investors may need to prepare for a potential stock market crash. The upcoming US Consumer Price Index report for April and the possibility of a global recession may also contribute to further downside pressure on Bitcoin&#8217;s price. However, the recent price action on the 4-hour chart signals a potential bullish reversal above $27,310 and may be a good signal to start accumulating Bitcoin. The key resistance for BTC/USD is at $29,000, and the key support level remains at $27,310.</p>



<p>While waiting for Bitcoin to move further, see our Price Predictions on <a href="https://www.cryptopolitan.com/xdc-price-prediction/?swcfpc=1">XDC</a>, <a href="https://www.cryptopolitan.com/news/polkadot/?swcfpc=1">Polkadot</a>, and <a href="https://www.cryptopolitan.com/cardano-price-prediction/?swcfpc=1">Curve</a></p>

Bitcoin price analysis: BTC consolidates above $27,000 as bears attempt to break support

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