The meteor pattern on the Bitcoin annual chart indicates a bearish reversal

Bitcoin's annual candles close in a meteor-like shape, raising concerns that selling pressure near the highs may signal an upcoming broader bearish reversal.

Bitcoin's ( $BTC ) latest annual close has attracted attention because it formed a candle very similar to a bearish shooting star. This candle pattern typically appears near market tops, reflecting failed attempts by buyers to sustain higher prices.

In Bitcoin's case, the price quickly retreated after reaching a new all-time high, closing significantly below the high, indicating active and dominant selling at the top.

While a single annual candle cannot confirm a complete trend reversal, its position at the top of multi-year upward movements makes it an important signal worth closer monitoring.

Key technical points for Bitcoin price

The annual meteor pattern suggests sellers are dominant near the all-time high

Shorter timeframes show compression within a triangle structure

The Point of Control (POC) acts as a key pivot for trend continuation

From higher timeframes, the meteor pattern reflects rejection at high prices. The long upper shadow indicates strong upward attempts met with equally strong selling pressure, preventing Bitcoin from maintaining higher valuations before the annual close. Historically, such candles often mark transitional phases from expansion to consolidation or correction, rebalancing supply and demand.

However, confirmation signals are crucial. On higher timeframes, such as the annual chart, only subsequent price action below key structural levels confirms a bearish outlook. Without follow-up confirmation, the shooting star may merely represent exhaustion within a range rather than the start of a sustained downtrend.

Zooming into shorter timeframes, Bitcoin is currently trading within a tight triangle consolidation zone. Prices are compressed between lower highs and higher lows, reflecting market hesitation after rejection at the highs. This consolidation indicates the market is absorbing previous volatility, with participants awaiting new information or liquidity-driven direction.

The midpoint of this triangle closely aligns with the recent downtrend control point ((POC)), the price level with the highest trading volume. This makes the POC a critical inflection zone. Holding above it suggests market balance and stability, while breaking below could trigger a rotation toward lower value zones, reinforcing the bearish implications of the annual candle.

In this compression phase, volume remains subdued, which is common as volatility contracts. Historically, such states often precede sharp expansions once the price breaks out of the structure. The direction of this breakout will largely determine whether the meteor pattern evolves into a meaningful bearish signal or merely a consolidation noise.

Future price movement expectations

As Bitcoin gradually approaches the triangle apex, the likelihood of volatility expansion increases. A downside breakout below the POC, especially supported by rising selling volume, would strengthen the bearish interpretation of the annual meteor and open the door to lower value regions.

Conversely, a breakout above triangle resistance supported by volume would invalidate the bearish outlook, indicating that the annual candle is merely a temporary exhaustion rather than a structural shift. Until a decisive breakout occurs, Bitcoin may continue to fluctuate within the range.