Bitcoin Topping Tail And Bear Flag Signal Caution For Investors

Bitcoin has been a stellar performer in 2024 and 2025. As crypto goes mainstream, institutions have been buying the 'digital gold'. However, the chart just put in a bearish reversal signal.

Topping tails are known in technical analysis as potential near-term top signals. It occurs when euphoria takes over, popping price sharply at all-time highs or 52 week highs. Then, buyers get exhausted and mega sellers emerge. This causes price to fall back sharply, closing in the lower 25% of the entire candle length. On Monday, July 14th, 2025. As of now, the topping tail is holding. Topping tails are negated when price has a daily close above the high of the tail. This would be a daily close above $123,230.00.

In addition, the price action since the topping tail has created what technical analysts call a bear flag. This adds additional credence to the bearish setup. Based on these factors, probability favors the downside in the near-term on Bitcoin.