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The Bitcoin price is inching closer to the much-coveted $100,000 mark, recently reaching an intraday high of $98,471.
Yet, despite this bullish price action, there are some worrying signs for the bulls.
According to Glassnode co-founders Jan Happel and Yann Alleman, the cryptocurrency’s momentum is weakening due to underwhelming trading volume.
“Even with Bitcoin breaking $97K, volume remains low—critical for short-term bullish continuation,” the analysts noted.
Higher volume would be an absolute must for sustaining strong upward momentum.
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Recently, 10x Research opined that Bitcoin’s uptrend could be nearing its peak after the flagship cryptocurrency formed the “shooting star” candlestick on the monthly pattern. This bearish reversal pattern was formed after Bitcoin started the previous month on a high note before the bears ended up in the driver’s seat once again with strong selling pressure.
It is worth noting that Bitcoin experienced major corrections after it formed similar shooting star candles in 2018 and 2021, respectively. Some are confident that a major trend reversal is underway despite the bulls trying to push Bitcoin back to the $100,000 mark.
Related
As reported by U.Today, the Federal Reserve indicated that it would implement fewer rate cuts this year than initially expected. This hawkishness threw a wrench in the works for Bitcoin bulls who hoped to see a significant rally after the cryptocurrency breached the $100,000 level for the first time last month.
On Thursday, BlackRock’s iShares Bitcoin Trust (IBIT) ETF record-breaking outflows of nearly $333 million. While these outflows might not indicate a broader trend, this is still a worrying start for the product that defined the 2024 bull run.