Community Trust ScoreLikely Real
Bitcoin’s recent price movement has raised fresh concerns among analysts, as technical indicators begin to show signs of weakening momentum. Hovering around the $105,000 mark, Bitcoin has lost close to 1% over the last 24 hours and is down more than 3% on the week. Though price action has largely remained within a tight range between $103,000 and $108,000, experts are starting to question whether the rally that has propelled Bitcoin to new highs is beginning to lose steam.
One of the most notable warnings came from John Bollinger, the creator of the Bollinger Bands indicator, who highlighted a formation known as the “Three Pushes to a High” pattern. This classic setup often suggests that a bullish run may be nearing exhaustion. According to Bollinger, Bitcoin’s repeated attempts to climb higher are resulting in diminishing gains, a signal that could indicate weakening buying interest.
Technical Patterns Point to Weakening Momentum
The “Three Pushes to a High” pattern, as observed by Bollinger, reflects three distinct surges in price that progressively lose strength. The first major move peaked around $93,700 in late April, followed by a second push to roughly $104,000 in early May. The third attempt reached a new all-time high of $111,800 by late May. While each move marked a new short-term high, the momentum behind each push appears to have waned, suggesting that the bulls are running out of steam.
Bollinger’s own indicator, the Bollinger Bands, also reinforces this cautionary outlook. Bitcoin has been touching or slightly exceeding the upper band multiple times in recent weeks—a typical sign of heightened volatility and potentially overextended price action. The repeated upper band touches, especially when paired with a loss of follow-through buying, suggest that Bitcoin might be entering a period of consolidation or even a short-term correction.
RSI and Momentum Indicators Support the Bearish Case
Other indicators are aligning with Bollinger’s assessment. The Relative Strength Index (RSI), which measures whether an asset is overbought or oversold, recently surged past the 70 level. Such high readings are often interpreted as a sign that an asset may be due for a pullback. As of June 4, the RSI remained elevated, reflecting that market enthusiasm may have run ahead of fundamentals.
Bitcoin’s momentum indicator, which often trends in sync with price movement, has also begun to show divergence. While price reached a new high, the momentum line has started to decline—a common early warning sign that the rally may be losing its fuel. Bollinger noted this divergence while responding to other market participants, indicating his view that the “Three Pushes” pattern could mark the conclusion of Bitcoin’s current bullish phase.
Large Holders Pull Back as Inflows Decline Sharply
Supporting the idea that Bitcoin’s rally is nearing a top, data shows a steep drop in inflows from large holders—typically institutions or high-net-worth individuals. Over the past seven days, large holder inflows have fallen by nearly 50%. Zooming out further, monthly and quarterly figures show a decline of over 10% and a staggering 95%, respectively.
This sharp drop in activity from major players could be an early sign that institutional investors are pulling back, possibly to lock in profits or wait for a more attractive reentry point. As large holders often influence market direction, their retreat might contribute to increased selling pressure in the near term.
Analyst Urges Diversification as Bitcoin Dominance Nears Resistance
Amid the signs of weakening momentum in Bitcoin, some analysts are turning their attention to altcoins. A crypto strategist known as Crypto Beast recently advised investors to consider reallocating part of their portfolios toward promising altcoins. He pointed out that while Bitcoin dominance has been increasing, it is now approaching a key resistance zone.
Crypto Beast argued that a potential drop in Bitcoin dominance could fuel a renewed rally in altcoins, many of which have yet to catch up to Bitcoin’s dramatic gains. He noted that Bitcoin had already posted a 121% gain last year and is up nearly 13% this year, hinting that much of the upside may have already been priced in.
Conclusion: Is the Rally Nearing Its End?
Although Bitcoin has remained relatively stable near the $105,000 mark, several indicators are flashing caution. With declining momentum, overbought technical signals, and shrinking participation from large holders, experts like John Bollinger are warning of a possible pause or reversal in the current rally. While this doesn’t guarantee a major correction, it does suggest that traders and investors should be prepared for increased volatility—and perhaps look to diversify as new opportunities emerge in other parts of the market.
