Bitcoin (BTC) recently closed its June monthly candle above $100,000, raising hopes among bulls for continued upside throughout the summer. However, the digital asset has now flashed a rare signal that warns of a significant price pullback in the coming months.
For the uninitiated, a quarterly TD Sequential sell-signal is a rare technical indicator that appears after multiple consecutive bullish quarterly candles, signaling long-term trend exhaustion. It suggests that Bitcoin may face a significant correction after a prolonged uptrend.
In 2015, its appearance was followed by a 75% decline in BTC, while in 2018, a similar signal preceded an 85% crash. Martinez cautioned that if the current signal plays out similarly, Bitcoin could fall as low as $40,000 – a potential 64% drop from current levels.
However, not all analysts share this bearish outlook. Fellow crypto analyst CryptoGoos interpreted Bitcoin’s quarterly close as bullish. He disputed comparisons with the 2021 double-top pattern and suggested that market structure remains strong.
In another post, Jelle noted that if BTC decisively breaks above $110,000, its next target could be $130,000. For reference, BTC’s current ATH is $111,814, recorded on May 22.
Two of the strongest continuation patterns back to back. $140K is not hopium. It’s the projection. Strong hands are positioning now. Bitcoin doesn’t wait. The breakout is inevitable.
