{"id":3155,"date":"2025-02-26T05:11:08","date_gmt":"2025-02-26T05:11:08","guid":{"rendered":"https:\/\/bitcotasks.com\/blog\/market-signals-point-to-caution-bitcoins-3-day-chart-shows-potential-sell-alert\/"},"modified":"2025-02-26T05:11:08","modified_gmt":"2025-02-26T05:11:08","slug":"market-signals-point-to-caution-bitcoins-3-day-chart-shows-potential-sell-alert","status":"publish","type":"post","link":"https:\/\/bitcotasks.com\/blog\/market-signals-point-to-caution-bitcoins-3-day-chart-shows-potential-sell-alert\/","title":{"rendered":"Market Signals Point To Caution: Bitcoin\u2019s 3-Day Chart Shows Potential Sell Alert"},"content":{"rendered":"

Bitcoin (BTC), the market\u2019s leading cryptocurrency, has officially entered a new downtrend phase following a period of consolidation around the mid-$90,000 levels.\u00a0<\/p>\n

After reaching an all-time high of $109,000 in January, Bitcoin has now seen a significant drop of 7%, bringing its current price to approximately $87,400. This decline raises concerns about the sustainability of the broader bull market as investor sentiment shifts towards fear.<\/p>\n

Could A Drop Below $80,000 Be Imminent?<\/h2>\n

Market expert Jesse Olson recently took to social media platform X (formerly Twitter) to question <\/a>whether Bitcoin is nearing a local top or possibly “the” top for this market cycle.\u00a0<\/p>\n

Olson referenced historical data suggesting that previous pivot points for Bitcoin often signal significant downturns. He highlighted two notable instances:<\/p>\n

In April\/May 2021, the Bitcoin price experienced a pivot point about 20% below its local top, leading to a price drop of 56%. In November 2021, the pivot was around 15% from “the” top, resulting in a staggering 77% decline.<\/p>\n

Currently, the price sits approximately 15% below the recent peak, and Olson notes a pending sell signal on BTC\u2019s 3-day chart, indicating potential further downside.<\/p>\n

The expert also mentioned <\/a>that while Bitcoin has hit Target 2 of 4 in his analysis, several indicators suggest the price could drop below $80,000, with higher time frames beginning to show bearish signals.<\/p>\n

\"Bitcoin\"<\/p>\n

Arthur Hayes Warns Of Bitcoin Downturn<\/h2>\n

Adding to the bearish sentiment, market expert Arthur Hayes expressed <\/a>concerns in a recent post on X, warning of a potential extension of Bitcoin\u2019s downturn.\u00a0<\/p>\n

Hayes highlighted that many holders of BlackRock\u2019s Bitcoin exchange-traded fund (ETF), IBIT, are hedge funds that have gone long on the ETF while simultaneously shorting Chicago Mercantile Exchange (CME) futures to earn a yield greater than short-term US treasuries.<\/p>\n

Should Bitcoin\u2019s price continue to fall, Hayes suggests that these funds may unwind their positions, selling IBIT and buying back CME futures. This profit-taking strategy could lead to further declines in Bitcoin\u2019s price, potentially pushing it down toward the $70,000 mark.<\/p>\n

Despite the prevailing bearish outlook, analyst Doctor Profit presents a more optimistic perspective. He emphasizes <\/a>that the production cost of Bitcoin is currently at $95,000, meaning the market price is below this critical threshold. Historically, prices trading below production costs have signaled prime buying opportunities for investors.<\/p>\n

Doctor Profit argues that this situation creates a compelling case for potential investors, as the market often sees price rebounds when production costs are higher than market prices.\u00a0<\/p>\n

\"Bitcoin\"<\/p>\n

Featured image from DALL-E, chart from TradingView.com <\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin (BTC), the market\u2019s leading cryptocurrency, has officially entered a new downtrend phase following a period of consolidation around the mid-$90,000 levels.\u00a0 After reaching an all-time high of $109,000 in January, Bitcoin has now seen a significant drop of 7%, bringing its current price to approximately $87,400. This decline raises concerns about the sustainability of…<\/p>\n","protected":false},"author":1,"featured_media":3156,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[245],"tags":[65,264,111,108,265,519,73,112,113,70,597,71,19,114,115,254],"class_list":["post-3155","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-chart","tag-bitcoin-news","tag-bitcoin-price","tag-bitcoin-technical-analysis","tag-bitcoin-trading","tag-btc","tag-btc-news","tag-btc-price","tag-btcusd","tag-btcusd-price","tag-btcusdt","tag-crypto","tag-crypto-analyst","tag-crypto-news","tag-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts\/3155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/comments?post=3155"}],"version-history":[{"count":0,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts\/3155\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/media\/3156"}],"wp:attachment":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/media?parent=3155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/categories?post=3155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/tags?post=3155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}