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A sharp Bitcoin rejection candle above $100,000 is flashing red on the charts, with analysts warning it could mark the start of a Wyckoff “distribution phase” and set the stage for a pullback toward $95,000 support.
Market analysts warn that this “Bitcoin rejection candle” marks a stalled breakout — potentially fueling a downturn toward $95,000 support, shaken by a looming Wyckoff “distribution phase.”
Bitcoin rejection candle signals have shaken market optimism, with analysts now eyeing a sharp pullback toward the $95,000 zone.
After a failed breakout attempt, BTC’s price structure is flashing warning signs of a Wyckoff “distribution phase,” raising fears that the $100,000 support level may not hold.
The rejection, described by trader Mikybull Crypto as “ugly,” saw Bitcoin’s rally toward $122,000 stall abruptly, forcing BTC back into a familiar trading range and casting doubt on short-term bullish momentum.
A Bitcoin rejection candle appearance coincides with traders, like ZAYK Charts, signaling that Bitcoin may have moved from an uptrend into distribution — a classic Wyckoff reversal pattern.
After an “Accumulation Phase in March–April” and a strong “Mark-Up” phase, BTC now shows sideways action and bearish RSI divergence, suggesting a coming Mark-Down targeting the $95,000 zone Cointelegraph.
Compounding the alarm, noted trader Mikybull Crypto called this week’s push above $122,000 “ugly,” attributing it to a rejection candle that trapped bulls and refilled old ranges. As he put it on X:
“THIS IS UGLY FOR BITCOIN BACK TO THE RANGE BY THE WAY, WHICH IS SUPER GOOD FOR ALTS” TradingView.
The Bitcoin rejection candle, acting as a resistance marker, echoes the distribution warning — hinting that momentum may be stalling.
According to ZAYK Charts, Bitcoin’s current structure mirrors a textbook Wyckoff distribution pattern — a phase often signaling that an uptrend is running out of steam.
“After a strong Accumulation Phase in March–April confirmed by bullish RSI divergence, BTC entered a powerful Mark-Up phase, reaching new highs,” ZAYK Charts wrote on X. “Currently, price action is showing signs of a Distribution Phase — sideways movement with weakening momentum, supported by bearish RSI divergence. If distribution confirms, the next phase could be a Mark-Down, with a potential drop toward the 95K zone.”
This Bitcoin rejection candle has intensified those concerns, as the market fails to maintain price action above old all-time highs from early 2025.
Not everyone sees doom ahead. Daan Crypto Trades points to a key confluence: the CME futures gap near ~$117K and the 4-hour 200 MA/EMA cluster.
Such zones often attract price action as “wick” levels that could flip to support for renewed longs — provided the Bitcoin rejection candle doesn’t drastically rollback price CointelegraphTradingView.
With the U.S. Consumer Price Index for July due imminently, volatility is expected to spike. Any surprise in CPI could immediately ripple through risk assets — including Bitcoin, especially one marked by a Bitcoin rejection candle at critical resistance.
The Bitcoin rejection candle isn’t one to ignore. If confirmed by further downside, it reinforces the distribution thesis — with $95K (or even the lower boundary near $92K) becoming the next battleground.
Watch whether the CME gap and moving-average cluster offer a reprieve, or if the macro data compound bearish pressure.
While the Bitcoin rejection candle suggests technical weakness, not all market watchers are fully bearish. Trader Daan Crypto Trades points to a CME futures gap at $117,000 as a potential magnet for price in the short term.
“$BTC is retesting the trend line it broke out of before,” Daan noted on X. “The 4H 200MA/EMA are right below, and that CME gap confluence could be a spot for a short-term bounce.”
Adding to the volatility outlook, the U.S. Consumer Price Index (CPI) print for July is due today. Historically, CPI surprises have triggered sharp moves in both equities and crypto, and traders are bracing for a similar reaction this time.
The emergence of a Bitcoin rejection candle doesn’t automatically signal the end of the bull market. However, the combination of technical weakness, key resistance rejections, and looming macro catalysts has put bulls on notice.
As Cointelegraph has reported Bitcoin’s prior rallies this year were fueled by a mix of institutional inflows and improving macro sentiment.
But with the Federal Reserve maintaining a cautious stance on rate cuts, the macro tailwinds may be fading — at least temporarily.
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