The recent trend of Bitcoin is eye-catching. From a technical analysis perspective, the current price pattern is forming a complex top structure.

Looking back at historical trends, Bitcoin experienced a pullback after a strong rise at the beginning of this year, followed by a significant drop after forming a false breakout at the top. A similar situation occurred in March last year, when a bullish top formed, leading to an initial drop of over 10%, followed by a rebound that formed a double top structure, but failed to break through the previous high, ultimately falling into a prolonged downtrend that lasted several months before reaching the bottom.
The market performance in April and November 2021 is also worth noting, as institutional investors showed a high position reduction, creating a bullish top formation. The current market conditions indicate that this pattern may play out again.
In the short term, Bitcoin has risen continuously by 10% without an effective pullback, which is unusual. The CPI data to be released on Wednesday is expected to have a negative impact, and the market may face a significant adjustment at that time.
Signals regarding capital flow are also worth noting. U.S. stock funds have seen a net outflow of funds for three consecutive weeks, which is completely at odds with the upward trend of the Nasdaq. This indicates that the U.S. stock market is currently driven mainly by retail investors, while institutional investors have actually begun to withdraw.
These factors collectively shape the current technical and financial landscape of the market. Investors should closely monitor subsequent developments and manage risks effectively.