Bitcoin has begun to lose momentum after a rally that pushed prices close to $79,400, with the latest movement slipping back to around $77,000. Several indicators do point to short term weakness, but this does not necessarily mean the bullish trend is over.
Rather than signaling a downturn, the current condition appears more like a slow down phase following an aggressive rally over the past few weeks.
According to data from CoinDesk, one key indicator in focus is the Coinbase Premium Index, which has recently turned negative after nearly two weeks in positive territory. This is typically interpreted as a sign that demand from U.S institutional investors is starting to slow.
However, within the broader market cycle, this kind of condition often appears when the market is “taking a breather" rather than reverse entirely.
On the other hand, a large whale on Bitfinex remains at a high level of exposure, near its cycle peak. While this may seem risky at first glance, it can also indicate that major players have not exited the market and are still holding expectations for further upward.
Another signal comes from Bitcoin’s failure to reclaim the short term holder realized price at $79,200. This level often acts as a psychological benchmark for short term investors. As long as the price remains below it, selling pressure from recent buyers is likely to persist.
Nevertheless, this condition reflects consolidation phase rather than large distribution.
Interestingly, all of this occurred in the same moment with the beginning of the Bitcoin conference in Las Vegas. An event that has often coincided with weakening price action. This phenomenon is commonly known as “sell the news”, where the market prices in the positive sentimental way ahead of an event.
With all of these signals, the market now appears at the decision point. If selling pressure continues, a deeper correction could follow. However, if the momentum was returned, this phase could become a foundation for the next upward move. For now, Bitcoin has not lost its bullish performance.
