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>>Bitcoin's price shows a concerning pattern similar to one seen before past significant drops – what does this mean for investors?

Bitcoin's price shows a concerning pattern similar to one seen before past significant drops – what does this mean for investors?

crypthub

3 days ago

Bearish Signals and Technical Analysis

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.

Market Psychology and Historical Cycles

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.

Potential Price Movements and Support Levels

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.