Despite holding above $90,000, Bitcoin is facing increasing bearish signals, leaving traders wary of a potential reversal.

Bitcoin (Bitcoin) Momentum is turning to the downside despite holding above $90,000, as Matrixport reports expanding lower Bollinger bands, the Greed and Fear Index approaching 10 - a historically key level of tradable lows - and a growing opportunity for the downside.

In a research note on Friday, analysts at SingaporeThe blockchain-based firm said the 30-day rolling yield is “close to -10%, a level that has slowed or reversed downward trends since late 2022,” indicating a potential opportunity for a trend reversal if key support levels hold.

Bitcoin remains above its 21-week moving average, which technically keeps it in a bull market. But trading volumes have declined, Matrixport notes, adding that “stablecoin minting remains weak.”

“Speculative activity is noticeably subdued, as evidenced by lower financing rates, adding to the overall cautious sentiment in the market.”

Matrixport

Traders also make profits quickly. Historically, when Bitcoin has risen more than 40% in a 30-day period, it has often peaked or entered a consolidation phase, analysts point out, adding that the December rally fits this pattern.

As of press time, the trend pattern remains bearish, but Matrixport highlights a key turning point: If Bitcoin crosses the $103,000 mark, the trend could turn bullish. However, “the longer Bitcoin’s consolidation period, the lower the trigger price point for a bullish signal, increasing the likelihood of a trend reversal,” Matrixport notes.

The report also notes that the $90,000 level appears to be holding up due to recent capital inflows from altcoins into Bitcoin, although analysts warn that “this signal line is falling.” Despite bearish signs, Bitcoin's "inherent volatility and potential for wealth creation" continues to attract strategic investors, especially during pullbacks, the analysts concluded.