Bitcoin’s remarkable rally appears to be losing steam. As of May 22, 2025, BTC is trading just below $110,000, hovering near a critical bullish trendline that has guided its surge from $75,000 to all-time highs above $110K. Despite holding these elevated levels, technical analysis suggests that Bitcoin is facing a potential trend reversal, with signs pointing toward a possible pullback to $100K.
The 30-day Rate of Change (ROC), a key momentum indicator, has formed a bearish divergence — meaning price has continued to rise, but momentum is fading. This divergence is often seen as an early warning signal of a weakening rally and potential Bitcoin price correction.
Bearish Divergence and MACD Weakness
The 30-day ROC’s lower highs are not the only red flag. The MACD histogram on Bitcoin’s daily chart has turned negative for the first time in weeks. This classic indicator, which gauges trend strength and direction, confirms diminishing bullish momentum and supports the bearish divergence narrative.
Bitcoin remains inside an ascending bullish channel, but a decisive move below this structure could trigger a retest of psychological support at $100,000 — a level that previously acted as resistance. Bitcoin price support levels around this mark are now being closely watched by traders for potential bounce scenarios.
Also Read: Karasjok Greenstone Belt: The Untapped Frontier in European Mineral Exploration
MicroStrategy Expands Bitcoin Bet Amid Market Jitters
Adding to the spotlight is MicroStrategy (now branded as Strategy), which announced the purchase of 4,020 more Bitcoins after raising $427 million through at-the-market (ATM) offerings. The company used sales of its MSTR, STRK, and STRF stocks to fund the purchase, bringing its total holdings to 580,250 BTC.
STRK and STRF are newly introduced preferred stocks that offer 8% and 10% annual returns, respectively, allowing MicroStrategy to raise funds without traditional debt. While CEO Michael Saylor views this as a long-term bullish strategy, critics like Peter Schiff warn of concentration risk and the possibility of bankruptcy if BTC crashes. However, Saylor insists that no margin calls can force the company to liquidate its holdings, even in a major downturn.
Crypto Market Analysis: What’s Next for BTC?
Despite the technical warnings, the broader outlook for Bitcoin remains positive. The recent golden cross — where the 50-day simple moving average crosses above the 200-day — continues to support a long-term bullish structure. But short-term traders are advised to stay cautious as Bitcoin trading signals increasingly point to a cooldown.
The next few sessions will be crucial. If BTC fails to hold above $108K–$110K, the likelihood of a Bitcoin pullback to $100K increases. On the flip side, strong buying at this level could reinforce support and restore upside momentum.
Conclusion
The current price action reflects a classic case of bearish divergence, with BTC momentum weakening despite high prices. A pullback seems likely, potentially testing the $100K support zone. While crypto market analysis still favors long-term growth, short-term technicals suggest caution. Investors and traders alike should watch momentum indicators closely and prepare for possible volatility ahead.
