Bitcoin Faces Pullback Risk Amid Bullish MACD Signals

Bitcoin’s price recently peaked at $111,875, but has since seen consolidation below $110,000. This follows significant profit-taking by investors. The sales amounted to approximately $11.4 billion last month, signaling a brief slowdown in the crypto market.

The Moving Average Convergence Divergence (MACD) on Bitcoin’s weekly chart has turned bullish. This development signals potential positive momentum in the market. However, analysis indicates a conflict as short-term holders continue selling portions of their holdings.

Investors Cautious Amid Bearish Divergences and MACD Signals

Despite the bullish MACD, there are concerns of a price pullback, given bearish divergences. This situation encourages investors to remain cautious. Some traders have shifted their focus to altcoins, seeking diversification during this uncertain period.

The broader market faces uncertainties driven by macroeconomic factors like increasing U.S. interest rates, potentially affecting cryptocurrency prices. QCP Capital highlighted these risks, advising focus on assets with clear regulatory and structural fundamentals for stability.

Bitcoin Technical Indicators Mirror Past Bullish Patterns

Historically, an MACD bullish turn often precedes significant rallies, as seen last year when Bitcoin surged past $70,000. Current technical indicators elicit cautious optimism, echoing past market patterns despite the bearish divergences.

Experts from Kanalcoin see potential for further gains if current bullish indicators persist. They indicate Bitcoin’s capacity for upward trends based on solid market data. Past instances suggest possible growth, even as macro risks loom.