Traders looking to impulsively take exposure to bitcoin (BTC) at record prices due to the “fear of missing out” (FOMO) should note that the market now looks notably confused, a shift away from the recent strong bull momentum.

The confusion is evident in BTC’s trading on Thursday, as it finally rose to six figures, tapping record highs near $103,900 before plummeting to $91,100, ultimately ending the day in UTC at approximately $97,000, data from TradingView and CoinDesk show. The trading range was so large that it engulfed all the price action since Nov. 20.

This led to the formation of a “high wave candle,” characterized by a small real body that shows the gap between the open and closing prices, along with large shadows (wicks) that reflect unusually wide price swings throughout the day.

It’s a sign that the bulls now have less than full control, with sellers looking to reassert themselves, serving as a cautionary indicator for those looking to chase the market at this moment. This cautionary signal becomes even more significant given that the pattern has appeared at record highs, representing a failure to maintain gains above the closely-watched $100,000 mark.

“The long upper shadows mean that sometime after the session’s open, buying pressure thrust the security’s price to an extended high. During the same session, selling press

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Author: Omkar Godbole