Bitcoin's momentum indicator is nearing the critical 0.5 threshold, raising concerns of a potential market downturn. Currently at 0.7, down from 0.9 in mid-May, a drop below 0.5 could signal a shift from bullish to bearish market conditions. Historically, such a decline has preceded significant market corrections, as seen in October 2025 and February 2026.
Adding to the bearish outlook, Bitcoin's spot Cumulative Volume Delta (CVD) is weakening, indicating reduced buying pressure. This combination of declining momentum and weak spot demand suggests a heightened risk of a sustained downtrend. Traders are advised to exercise caution, as the probability of a significant decline increases if these indicators continue to deteriorate.
Bitcoin Momentum Indicator Nears Critical 0.5 Level, Signaling Potential Downtrend
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
