Bitcoin fell on Sunday to around 87,600 dollars, confirming that the ongoing correction may not be over yet. According to data from TradingView, a rising price channel had been forming since November 21, but from a technical analysis perspective, this is a structure that often does not end with continued growth. On the contrary, similar market setups in the past have repeatedly led to a more significant decline. The current development also indicates a loss of buying momentum, which attentive investors cannot afford to ignore.

BTC and warning signals on the chart

Within the rising channel, Bitcoin formed a double top pattern around 94,000 dollars (red zone). This technical pattern is generally considered a signal of a possible trend reversal and, in this case, was further confirmed by multiple factors.

The price also respected a long-term descending resistance that originated from the previous correction highs (white line). Even a three-week mild increase was not enough to break it, indicating weakness among buyers. The subsequent price rejection suggested that the market lacks enough strength to continue rising without deeper consolidation or a decline.

In the past few hours, the lower boundary of the rising channel was tested, which brought some short-term stabilization. However, several technical indicators suggest that selling pressure may not be exhausted yet. If this support is broken, the next logical target would be a significant support zone between 72,000 and 56,000 dollars.

A significant portion of trading in 2024 took place in this price range. This increases the likelihood of a strong volume base. However, this scenario represents a pessimistic variant of development and cannot be considered a certainty. The crypto market is known for rapid changes in sentiment, and the final direction will depend on how the price reacts to the nearest key levels.

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Vanguard likened Bitcoin to a Labubu toy

Fuel was added to the fire recently by Vanguard, according to a report from CoinDesk, which remains skeptical toward Bitcoin. Although it recently allowed access to crypto ETFs, John Ameriks, the global head of quantitative equities, compared Bitcoin to a digital Labubu toy. That is, a speculative collectible rather than a tool for building long-term wealth.

According to him, Bitcoin lacks key features Vanguard requires for investments, such as income, compound interest, and stable cash flow. Despite the firm opening its ETF platform to competitors like BlackRock or Fidelity, it does not plan to launch its own crypto ETF.

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