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Bitcoin Faces Risk of Pullback to $100K as Momentum Indicator Diverges Bearishly: Technical Analysis
Bitcoin could fall out of its bullish channel, possibly testing support at $100,000, though the broader outlook remains positive.
Updated May 27, 2025, 2:10 p.m. Published May 27, 2025, 5:11 a.m.
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What to know:
- Bitcoin's bull run has stalled, with technical indicators suggesting a potential price pullback.
- The 30-day rate of change shows a bearish divergence, indicating weakening momentum despite recent price rises.
- Bitcoin could fall out of its bullish channel, possibly testing support at $100,000, though the broader outlook remains positive.
This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
Bitcoin's bull run has stalled, with emerging technical signals pointing to a possible price pullback.
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The leading cryptocurrency by market value traded near $108,000 at press time, probing the bullish trendline, characterizing the sharp rise from $75K to record highs over $110K, TradingView data show.
There has been little bullish action in the past 24 hours despite reports that the Trump family media company plans to raise $3b billion to buy cryptocurrencies such as bitcoin.
A key momentum indicator called the 30-day rate of change (ROC), which measures the percentage increase or decrease in bitcoin's price over the past month, has chalked out a "bearish divergence."
The bearish pattern happens when an asset's price rises, but momentum indicators like the 30-day rate of change (ROC) fail to confirm the same, hinting at potential weakness and price correction.
Although bitcoin remains within a bullish upward channel, the 30-day ROC is forming lower highs, signaling a bearish divergence and weakening momentum.
Additionally, the daily chart moving average convergence divergence (MACD) histogram, an indicator widely used to gauge trend strength and changes, has flipped negative, indicating a bearish shift in momentum.
All this means that BTC could dive out of the bullish ascending channel, potentially revisiting the major psychological resistance-turned-support at $100,000.
The broader outlook remains constructive, consistent with the recent golden cross of the 50- and 200-day simple moving averages (SMAs).
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- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
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Gold tops $5,000 as bitcoin stalls near $87,000 in widening macro-crypto split: Asia Morning Briefing
Bitcoin’s onchain data points to supply overhang and weak participation, while gold’s breakout is priced by markets as a durable macro regime shift.
What to know:
- Gold’s surge above $5,000 an ounce is increasingly seen as a durable regime shift, with investors treating the metal as a persistent hedge against geopolitical risk, central bank demand and a weaker dollar.
- Bitcoin is stuck near $87,000 in a low-conviction market, as on-chain data show older holders selling into rallies, newer buyers absorbing losses and a heavy supply overhang capping moves toward $100,000.
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