Kitco's chief market analyst, Jim Wyckoff, has recently noted that Bitcoin is in the midst of forming a bearish chart pattern that could add more pain for the bulls in the short-term due to an ominous formation.
As of now, BTC is trading at $5,213 after dipping by about two percent today.
Bitcoin is on shaky ground
The formation that should spook the bulls is a bearish pennant, which resembles a triangular flag. It appears when a certain asset records an immense price drop and fails to recover.
On March 12, BTC plunged by 38 percent, its third-biggest drawdown in history. Since then, the coin's price has continued moving sideways while forming lower highs.
According to trader Satoshi Flipper, BTC could retrace back to $4,700 if the bearish pennant eventually breaks down.
Another sell-off on Wall Street
According to Wyckoff, the bears are still in control of the narrative. The fact that the U.S. equities market is currently in the middle of another sell-off certainly doesn't help. While the Dow managed to avoid the dreaded circuit breakers, it is still down by 4.7 percent (990 basis points) at the time of writing.
Given the uncanny correlation between BTC and the stock market, more carnage on Wall Street could certainly push BTC below $5,000.
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