Bitcoin Price Technical Analysis for 6/5/2015 Potential Shoulder

We saw bitcoin start the week with a double top after failing to push above 243. The base of this price top was at 239 and we saw a breakout on Monday.

After hanging around 239, we saw price fall lower during the Tuesday, May 5th session until btcusd found support at 231. Bitcoin (BTCUSD) 1H Chart May 6The 1H chart shows a market that has turned from bullish to at least sideways if not bearish. The bearish outlook is based on the fact that the double top was respected, and that the 1H RSI tagged 30, which shows initiation of bearish momentum. However, price is still above a previous support pivot around 231, and is above the 200-hour SMA. For a bearish outlook to be more clear, we should see if btcusd reaches 239-240. If this area acts as resistance, we would have a potential shoulder to a head and shoulders pattern. Also, if the 1H RSI holds under 60, it would reflect maintenance of the new bearish momentum. Then a break below 231 would show a head and shoulders and essentially turn a sideways market into a bearish one, which puts pressure towards the 213-214 low from April. Below this the 200 handle might be a psychological support, but the low on the year at 166-167 would be in sight as well.