Bitcoin risks a rollback to $ 100,000

Bitcoin BTC $110,222.39 Bitcoin 0.73% Market capitalization $2.19 trillion VOL. 24 hours $2.2 billion may face a price pullback to $ 100,000, despite the generally positive market dynamics. This is evidenced by the technical analysis of CoinDesk analyst Omkar Godbole, published on May 27. Although the cryptocurrency maintains an upward trend, indicators signal a weakening of momentum on the part of buyers.

As of the time of publication, BTC was trading near $ 108,000, approaching the lower boundary of the upward channel that formed during the rise from $ 75,000 to a record high of over $ 110,000. Despite the news that the Trump family’s media holding company plans to raise $ 3 billion to buy cryptocurrencies, market activity remained moderate.

The 30-day Rate of Change (ROC), a tool for analyzing dynamics, recorded a bearish divergence. This means that the price is rising, but the indicator does not confirm this movement, which is often a harbinger of a potential decline. In addition, the MACD histogram, another tool for assessing trend strength, has moved into the negative zone.

Taken together, these factors indicate that bitcoin is likely to exit the upward channel and test the support level at the psychologically important $ 100,000 mark. At the same time, the overall picture remains optimistic due to the recent formation of the «golden ratio» — the intersection of the 50-day and 200-day moving averages.

Godbole notes that despite short-term technical weakness, long-term trends remain positive. This indicates that investor interest in bitcoin will remain strong during the current cycle, even if a correction does occur.