Bitcoin’s incredible run; which saw prices hit all time highs above $111,000, is slowing down. Technicals are flashing warning signs of a Bitcoin price pullback, even as overall market sentiment is cautiously optimistic. As of May 27, 2025, BTC is trading at $109,724; testing the lower boundary of the bullish channel that took it from $75,000 to recent highs.
Technical Caution and Key Levels to Watch
The momentum is being challenged by key technicals. One red flag is the 30 day rate of change (ROC), a tool that measures Bitcoin’s percentage gain or loss over the past 30 days. Analysts, including those from TradingView and technical strategist Aksel Kibar, are seeing a “bearish divergence” in the ROC. This divergence occurs when Bitcoin price keeps going up while the ROC makes lower highs, meaning buying pressure is waning.
Bitcoin Price Pullback
Adding to the concerns, the daily Moving Average Convergence Divergence (MACD) histogram has turned negative. According to Kibar, the MACD histogram flipping negative is a classic sign of a trend shift, meaning Bitcoin may see a short-term price correction. The combination of these indicators is bearish for the short term.
Traders and analysts stress the importance of watching key support and resistance levels. If Bitcoin price breaks below $108,000; it could be a steeper correction to $100,000. If it bounces from here with momentum, it could be back to new highs.
The convergence of bearish indicators like ROC and MACD with psychological support levels means traders should be cautious and wait for confirmation of a breakdown or recovery.
$100K Psychological Support in Focus
Analysts agree that $100,000 is a key psychological and technical level for Bitcoin. If the Bitcoin price pullback deepens, this will be the first line of defense. Kibar says,
“If Bitcoin breaks below the bullish channel, we will see a retest of the $100K support, which has been a resistance-turned-support zone for the past few months.”
This comes as reports emerged that the Trump family’s media company plans to raise $3 billion to invest in BTC and other digital assets. While the announcement initially added to the bullish momentum, the market has since cooled off; meaning traders are taking profits or being cautious due to the bearish technicals.
Overall Outlook Remains Bullish Despite Short Term Headwinds
Despite the short term bearishness, the overall trend for Bitcoin is still bullish. Analysts point to the golden cross of the 50 day and 200 day simple moving averages (SMAs), a bullish pattern that means long term upside. According to TradingView, Bitcoin price structure is still in an uptrend and long term holders are still confident in the asset’s strength.
Bitcoin Price Pullback
Additionally, macro factors like institutional adoption and regulatory signals are still bullish for Bitcoin long-term. CoinShares says, Bitcoin’s recent run and the golden cross and institutional interest means a good base for further upside even if short term corrections are seen.
Conclusion: Near-Term Caution, Long-Term Bullish
In summary, Bitcoin price momentum is under pressure from weakening indicators, bearish divergences in momentum and negative MACD. A pullback to $100K is possible but the bigger picture is bullish, supported by structural trends and institutions. Traders should wait for confirmation of a breakdown or signs of buying interest that could take Bitcoin back to all time highs.
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FAQs
What’s causing the Bitcoin price pullback?
Bearish divergences in ROC and MACD.
Is $100K a strong support for Bitcoin?
Yes, $100,000 is both psychological and technical support.
What’s a golden cross and why does it matter for Bitcoin?
A golden cross is when the 50-day SMA crosses above the 200-day SMA; long term bullish.
How does institutional interest affect Bitcoin price?
Institutions buying increases the long-term outlook by increasing demand and stability.
What to watch in the coming days?
Key levels are $108,000 and $100,000 and a bounce or breakdown from here.
Glossary
Bitcoin Price Pullback: short-term decline in price after a rally.
30-day Rate of Change (ROC): momentum indicator that measures 30 day price change.
MACD (Moving Average Convergence Divergence): trend following indicator that signals changes in momentum.
Golden Cross: bullish pattern when the 50-day SMA crosses above the 200-day SMA.
Support Level: price level where buying interest is expected to be strong enough to prevent further declines.
Sources
Investopedia
Binance.com
CoinDesk
CoinMarketcap
Read More: Bitcoin Warning Signs: Is the $100K Crash Coming Next?">Bitcoin Warning Signs: Is the $100K Crash Coming Next?
