When retail investors shouted $90,000, the chart broke! Bitcoin's spine-chilling warning signal!

▲ Bitcoin plummet/ChatGPT generated image ©

While the market's extreme FOMO (Fear Of Missing Out) sentiment towards the leading cryptocurrency, Bitcoin (BTC), is spreading with expectations of breaking $100,000, on-chain data and technical indicators are sending cold short-term correction warnings, demanding investors' special attention.

According to crypto-specialized media Finbold on April 29 (local time), blockchain analytics platform Santiment reported that extreme optimism predicting Bitcoin's price to reach between $90,000 and $99,000 surged, based on data collected from major social media platforms like X, Reddit, and Telegram. Conversely, cautious forecasts of a decline to the $50,000 to $59,000 range have disappeared, indicating a significant reduction in market fear.

However, experts interpret this pervasive market optimism as a typical warning sign. Historically, periods of excessively high expectations for specific price levels have coincided with extreme volatility and the formation of local tops. This suggests that seasoned traders may have entered a distribution phase, offloading their holdings to retail investors expecting blind rallies and exiting the market. The fact that the current price remains below $90,000 indicates that public expectations are far ahead of reality.

These warnings from on-chain data are also fully confirmed by technical chart patterns. Renowned crypto trading expert Ali Martinez pointed out that on the 4-hour chart, Bitcoin has broken below the uptrend line that had been supporting its short-term bullish structure, showing early signs of a trend reversal. The analysis suggests that the upward momentum has noticeably weakened as the strong support line, which had been defending price increases for some time, has collapsed.

Currently, Bitcoin is trading around $77,588, having risen by approximately 2% over the past 24 hours, but it has fallen by about 1% on a weekly basis. Analysts identified the $75,000 level as a key defensive line to watch in the short term, predicting that if this support level collapses, additional downward pressure will intensify, potentially leading to a prolonged sideways market. Conversely, they added that to completely nullify bearish signals and revive bullish sentiment, Bitcoin must swiftly recover at least the $79,000 mark.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*