Bitcoin faces the risk of slipping out of its bullish channel, with a potential test of key support at $100,000, though the overall market sentiment remains optimistic.
The leading cryptocurrency, Bitcoin (BTC), currently trading around $108,000, has seen its recent rally lose steam. Technical data from TradingView shows BTC hovering near the lower boundary of its ascending channel that has propelled it from $75,000 to record highs above $110,000.
Despite news that a Trump family media firm plans to raise $3 billion for crypto purchases including Bitcoin, buying momentum has cooled over the last 24 hours.
A critical momentum metric, the 30-day rate of change (ROC), which tracks the percentage price change over the past month, is signaling a bearish divergence. This occurs when Bitcoin’s price climbs but the momentum indicator forms lower highs, suggesting weakening strength and a possible price correction ahead.
Further, the daily moving average convergence divergence (MACD) histogram has turned negative, reinforcing the bearish momentum shift.
These signals indicate Bitcoin might break below its bullish channel and revisit the psychological support level at $100,000, which was previously a major resistance point.
However, the broader technical outlook remains positive, supported by the recent golden cross between the 50-day and 200-day simple moving averages (SMAs), a bullish indicator signaling potential for continued upward trends.
