After setting a fresh record above $125,000 over the weekend, Bitcoin is showing early signs of cooling off as traders begin securing profits.
The latest technical signals indicate that the rally might be losing momentum in the short term.
According to on-chain analyst Ali Martinez, the TD Sequential indicator has triggered a sell signal on Bitcoin’s 12-hour chart – a setup that has historically preceded short-term pullbacks.
The indicator’s “9” count often appears when markets enter overbought territory, hinting that some investors may start trimming their positions after an extended upswing.
Bitcoin’s recent surge has left $120,000 as the nearest major support level. Analysts see this price area as a critical battleground: a successful defense could stabilize the trend, but a decisive drop below it might open the door to a deeper correction.
While the broader sentiment around Bitcoin remains bullish, short-term volatility is expected to rise as the market digests its latest rally. Many traders are now watching whether the leading cryptocurrency can hold above $120,000 – or if this level will mark the start of a temporary cooldown.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-price-btc-pulls-back-after-record-high-as-sell-signal-appears/