Bitcoin, the most valuable cryptocurrency by market capitalization, is now showing signs of deceleration after a healthy gain in the recent past. It has traded near $108,000, probing the support of a trendline that pushed it from near $75,000 to way above $110,000. That price area is now a turning point as momentum seems to dissipate.
Bitcoin has experienced minimal positive motion over the past 24 hours, even after the news that the Trump family’s media group is to raise $3 billion.
That fundraiser’s purpose is to invest in digital assets such as Bitcoin, but the market has not reacted with considerable buying interest to that news to date.
Traders use the 30-day rate of change, or 30-day ROC, as one of the indicators to track monthly price changes. Traders also use the MACD to test whether a trend is strengthening or losing momentum, and this turn suggests that sellers are gaining the upper hand.
That 30-day ROC indicator is currently forming a bearish divergence, something that usually indicates declining strength in the current trend. Bitcoin’s price is rising, but lagging momentum signals potential upcoming selling pressure.
Bitcoin faces short term bearish indicators
Another widely tracked gauge, the daily chart MACD histogram, has just turned negative after a month. Traders use MACD to gauge trend strength; the recent shift indicates sellers may be gaining control.
The price could fall back down to that pivotal $100,000 threshold if Bitcoin breaks below the current channel, a number already seen by a number of traders as a major support.
In light of these short-term negative indicators, the longer-term picture is still positive. The recent golden cross suggests a potential sustained upside as the 50-day average crosses above the 200-day average.
Investors and traders will meanwhile look out to see if Bitcoin maintains current support or reaches deeper into a correction to the crucial $100,000 benchmark.
