What happened? Bitcoin flashed a bearish TD Sequential signal and slipped about 1.6% to roughly $121,639.

The TD Sequential sell signal reappeared on the daily chart, which historically has preceded short-term corrections. Similar alerts earlier this year led to drops of about 7% and 13%, so traders are cautious. Price is now trapped in a tight range and forming a short-term symmetrical triangle between roughly $119,500 and $122,500, with key support near $122k and $116.7k.

Who does this affect? Traders, institutions, and anyone holding or thinking about buying Bitcoin right now.

Retail traders face the classic FOMO-versus-fear dilemma as some hesitate to sell and others worry about catching a falling knife. Institutional players and ETF flows still underpin the broader uptrend, but short-term signals can influence allocation and trading activity. Leveraged traders and those relying on technical setups are most exposed if the $119.5k–$117.4k zone gives way toward $115k or $112k.

Why does this matter? Because whether Bitcoin pulls back or breaks out will steer sentiment, ETF flows, and price direction into Q4.

A decisive break above $126.2k could ignite another leg up toward $130k–$135k as buyers pile in and momentum returns. Conversely, a failure of the near-term support could trigger a sharper correction similar to the earlier 7–13% moves and pressure short-term liquidity and confidence. Overall, institutional inflows and a rising trendline around $115k keep the larger bullish case intact, but the next move will set the tone for market risk and opportunity in the weeks ahead.