There is a crucial indicator suggests that bearish undercurrent has formed as Bitcoin price has consolidated around $9,000

The price action of the Bitcoin price has been really stable for the past eight weeks. But, there is an important indicator that shows that falling cash flow has formed when Bitcoin has consolidated around $ 9,000.

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BTC/USD 4-hour chart | Source: TradingView

Bitcoin price is forming a bearish trend

According to cryptocurrency analyst Tom Demark Sequential, Bitcoin is forming a bearish trend with the TD Sequential indicator – a time-based indicator that signals trends and inflection points in an asset’s rallies or corrections.

He stated:

“With a couple more days left in the weekly candle, Bitcoin is on a Red 2 below a Red 1, which would signal a short trade on a weekly timeframe, all in the context after a perfected Green TD9 the first week of June.”

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Bitcoin price chart shared by crypto trader “Big Chonis” Chart | Source: TradingView.com

Bitcoin finally looked like this on TD Sequential in early March, before the incident occurred at $ 3,700.

Moreover, the bearish signal on TD Sequential is not the only signal that the Bitcoin price is heading towards a downtrend.

Below is a chart from an Ichimoku Cloud specialist, showing Bitcoin looks similar in structure to the March crash.

Considering the confluence, it is no wonder that institutional traders involved with Bitcoin are being careful.

According to CME futures data, organizations have been building a net short position in Bitcoin. Specifically, the institutional traders on the CME are cumulatively shorting 2,038 contracts. The last time institutional traders had discounted prices now is in February, before the breakdown to $ 3,700.

Bitcoin may actually fall from the $9,000s

According to cryptocurrency analyst Eric Thies, Bitcoin’s price action over the past two months looks nothing like any of the market tops seen over the past two years:

“BTC structurally looking less like a local top and more like a launchpad as of now. Naturally speaking, things may need to go down before they really go up but this time looks promisingly different.”

The idea goes that since Bitcoin has yet to break down from the current range, this is more likely a pitstop in a bull market rather than a bearish reversal.

You can also check Bitcoin Price here.

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