Bitcoin's price shows a concerning pattern similar to one seen before past significant drops – what does this mean for investors?
Bitcoin's price has fallen approximately 1.6% in the last 24 hours, currently trading around $121,639. A key sell signal has appeared on the daily chart, prompting trader caution and a shift toward bearish sentiment. The TD Sequential indicator, a historically reliable predictor of corrections, has triggered a potential short-term pullback. Bitcoin is consolidating within a narrow price range, forming a short-term symmetrical triangle pattern. Current market psychology mirrors the emotional dynamics seen during the 2022–2023 bear market, effectively flipped on its head. Previously, investors feared buying near $16,000–$20,000; now, they hesitate to sell despite potential gains. This hesitation often precedes volatility rather than a collapse, reflecting a key market driver. The market's inherent edge lies in human emotion, not necessarily outsmarting it. If Bitcoin breaks above $126,200, it could move towards $130,000, potentially completing a bearish butterfly pattern. Should the $119,500–$117,400 range fail, support levels at $115,400 and $112,000 could be tested. The broader uptrend remains intact above $115,000, with critical support zones currently at $122,000 and $116,700.