Bitcoin’s Rollercoaster: Will It Plunge to $100K or Soar to Glory? 🎢💰

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What to know:

  • Alas, the gallant bull run of Bitcoin has met an unexpected halt, with ominous technical indicators whispering of a potential price retreat.
  • The 30-day rate of change, that fickle friend, reveals a bearish divergence, suggesting that momentum is waning, despite the recent price frolics.
  • Our dear Bitcoin may tumble from its lofty bullish channel, perhaps testing the sturdy support at $100,000, though the broader horizon still glimmers with promise.

This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.

Oh, the drama! Bitcoin’s bull run has come to a standstill, with emerging signals hinting at a possible price pullback. The leading cryptocurrency, that dashing rogue, traded near $108,000 at the time of writing, flirting with the bullish trendline, a testament to its audacious rise from $75K to record heights over $110K, as the wise sages at TradingView have noted.

Yet, in the past 24 hours, the bullish fervor has been as scarce as a summer rain in the desert, despite the tantalizing news that the Trump family media company is planning to raise a staggering $3 billion to indulge in cryptocurrencies like our beloved Bitcoin. Oh, the irony! 💸

A pivotal momentum indicator, the 30-day rate of change (ROC), which measures the percentage increase or decrease in Bitcoin’s price over the past month, has drawn a rather gloomy picture with its “bearish divergence.” This pattern emerges when the asset’s price ascends, yet the momentum indicators, like the ROC, fail to echo this triumph, hinting at potential frailty and a price correction. How poetic! 🎭

Despite Bitcoin’s continued residence within a bullish upward channel, the 30-day ROC is forming lower highs, signaling a bearish divergence and a weakening spirit. Additionally, the daily chart’s moving average convergence divergence (MACD) histogram, that trusty guide for gauging trend strength, has turned negative, indicating a bearish shift in momentum. Oh, the fickleness of fate!

All this suggests that BTC might plunge from its bullish ascent, potentially revisiting the major psychological resistance-turned-support at the illustrious $100,000. But fear not, dear reader! The broader outlook remains constructive, consistent with the recent golden cross of the 50- and 200-day simple moving averages (SMAs). A glimmer of hope amidst the chaos!

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2025-05-27 08:32