Overview

Bitcoin’s recent bullish momentum has encountered a slowdown, as technical indicators suggest a possible price retraction.

• Bitcoin has been trading around $108,000, testing its bullish trendline as it fluctuated from $75,000 to recent peaks over $110,000.
• Recent reports suggest that the Trump media entity aims to raise $3 billion for cryptocurrency purchases, which has not spurred significant bullish activity in the last 24 hours despite the news.

Technical Indicators

A notable indicator, the 30-day rate of change (ROC), which tracks price changes over the last month, is showing a bearish divergence. This occurs when price levels rise, but momentum indicators do not support the trend, indicating potential weakness and a possible correction.

BTC’s daily chart. (TradingView/CoinDesk)

Currently, while Bitcoin remains within a bullish upward channel, the ROC is making lower highs, indicating diminishing momentum. Additionally, the Moving Average Convergence Divergence (MACD) histogram has switched to a negative state, reflecting a bearish shift in momentum.

Overall, there is a prospect that Bitcoin could fall out of its bullish channel, potentially revisiting the significant psychological resistance-turned-support at $100,000, though the broader view remains positive, supported by the recent golden cross of the 50 and 200-day simple moving averages.