In recent trading sessions, Bitcoin (BTC) has made headlines as it closed its June monthly candle at an impressive $100,000. This milestone has not only excited investors but also ignited discussions about its potential for further growth. However, recent indicators suggest that a price pullback may be looming on the horizon.

Bitcoin Signals Potential Downtrend

Recent insights shared by crypto analyst Ali Martinez indicate that Bitcoin has activated a Tom Demark (TD) Sequential sell-signal on its quarterly chart. This sell signal is historically significant and often forecasts major downturns in the cryptocurrency market.

The TD Sequential sell-signal appears after a series of bullish quarterly candles, suggesting that the current bullish trend may be reaching its limits. Significant past occurrences, such as in 2015 and 2018, saw Bitcoin experience declines of 75% and 85%, respectively, following similar signals. If history repeats itself, Bitcoin could see prices slump to around $40,000, representing a staggering potential drop of 64% from its current valuation.

Nonetheless, the sentiment isn’t entirely bearish—other analysts like CryptoGoos argue that the bullish momentum remains intact. By examining Bitcoin’s quarterly close, they believe the fundamentals and market structure still support upward movement, contrasting the prior bearish patterns.

Can BTC Achieve New Heights?

Various market analysts, despite the bearish signals, maintain a bullish outlook for Bitcoin, anticipating an impending all-time high (ATH). Analyst Jelle noted that Bitcoin has recently broken out of a bullish pennant formation, suggesting it’s positioned for a significant upward trend.

He further indicated that crossing the $110,000 threshold could propel Bitcoin’s price to target levels as high as $130,000. Notably, Bitcoin’s previous ATH was recorded at $111,814 on May 22, demonstrating the potential for explosive growth in the near future.

Additionally, Merlijn The Trader has identified bullish patterns on Bitcoin’s daily charts, including a breakout from a falling wedge and the formation of a bull flag—two powerful indicators that could suggest a bullish continuation. He noted:

The combination of these patterns is compelling. A target of $140K is not mere speculation; it’s a well-founded projection. Market players with strong positions are gearing up for an imminent movement.

Furthermore, Bitcoin’s weekly RSI is trending toward key levels that have historically signified new price peaks. As of now, Bitcoin trades at approximately $109,438, reflecting a 2.9% increase within the last 24 hours.