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>>Could Bitcoin's value decline significantly? Certain indicators suggest a potential downturn.

Could Bitcoin's value decline significantly? Certain indicators suggest a potential downturn.

crypthub

1 day ago

Bitcoin's Recent Rally

Bitcoin's price recently surged past $126,000, achieving a new all-time high. However, indicators suggest potential overheating and a possible correction. The daily technical picture is displaying historically reliable signs of an impending market adjustment. This current situation warrants close observation of market behavior.

Technical Indicators Suggest Caution

The Tom DeMark (TD) Sequential has reached 9 on Bitcoin's 24-hour chart, previously signaling pullbacks. The Relative Strength Index (RSI) registers at 74.21, placing Bitcoin in the overbought zone. The Chande Momentum Oscillator (CMO) reading of +100 further reinforces the possibility of a market reversal.

Potential for a Pullback

Another strategist predicted a short-term Bitcoin pullback due to resistance near $126,000. This resistance has consistently capped price action since mid-July, mirroring previous price behavior. A decisive breakout above this resistance would invalidate the bearish outlook.

Current Market Status

Bitcoin is currently trading around $121,750, reflecting a slight daily decrease. Analysts are watching for flattening or declining RSI and CMO values to confirm a bearish divergence. Continued monitoring of these factors is critical for understanding potential market shifts.