Bitcoin Shows Weakness As Volume Drops And Doji Appears

• Bitcoin shows bearish signals with a double-top pattern and low trading volume confirming resistance.
• Average trader profits hit 27%, raising concerns of market overheating if gains push past 40%.

Bitcoin seems to be showing signs of fatigue after setting a new record high (ATH) on May 23. Shortly after creating the ATH, the daily chart immediately recorded a full red candle, a sign that often appears as a signal of strong rejection from the market. In this context, the emergence of a double-top technical pattern also strengthens the suspicion that Bitcoin is at an important crossroads.

A few days later, a Doji candle appeared on May 27. Not just any Doji, this pattern forms a lower high, which in the world of candlesticks is usually considered a confirmation of previous selling pressure. And right on May 28, Bitcoin resumed its downtrend with another red candle that emphasized the strength of sellers in the short term.

Trading volume? Very low. Almost as if people have started to step away from their monitor screens, waiting to see who will move first. Some analysts even say that when volume decreases like this, the market becomes more easily shaken, both up and down.

Bitcoin Traders Still in Profit Zone but Risks Are Creeping In

Data from on-chain analyst Ali Martinez provides another perspective for traders. Currently, BTC traders are sitting pretty enjoying an average profit of 27%. This figure is quite large, but not yet in the danger zone.

However, Martinez warned that historically, the market starts to “overheat” when this profit figure breaks through 40%. If it gets there, the potential for massive profit-taking could occur. And we all know what usually follows after that: selling pressure that makes the chart look like a surfboard.

Furthermore, CNF also previously reported that the momentum of Bitcoin and the main crypto market was hampered by macro sentiment. The sudden announcement of the US tariff policy created uncertainty, not only in the crypto market, but also in traditional markets. The domino effect was quite fast.

From being initially euphoric, market players suddenly became extra careful. It felt like someone who was at a party, but suddenly someone turned off the music.

Can It Still Go Up Again?

According to candlestick analysis from Master Ananda, the opportunity for Bitcoin to return to a short-term bullish can only occur if this coin is able to break through and close the day above the previous ATH. As long as that hasn’t happened, a short position still makes sense.

He also said that seven consecutive weeks of green closing is not always good news. In fact, it could be a sign that the market is starting to tire. A kind of signal that buyers are starting to lose steam, and prices are looking for a break to breathe.

On the other hand, he highlighted that many large institutions started to enter when prices were at their highest. Ironically, because this could actually indicate that the rally is nearing its end. The correction could be a normal retracement, but if panic gets involved, it could turn into a deep correction or even a crash.

So what should be done? Ananda bluntly said, if your position has grown 300% to 500%, maybe it’s time to think about locking in profits. “If you are waiting for more, forever more, you are just a greedy … trader,” he said.

Meanwhile, as of the writing time, BTC is changing hands at about $108,523.77, down 1.89% over the last 7 days and 0.30% over the last 24 hours.

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