After a sharp drop in early February, Bitcoin’s price made a strong recovery over the next two months. May started off on a positive note, but the leading cryptocurrency has cooled down in the past week. This fits with Bitcoin’s pattern of not having three straight months of price gains during a bear market year. Interestingly, recent on-chain data suggests trouble may be ahead for Bitcoin, at least in the short term.
Could the bears take over the Bitcoin market again? In a new post on X, crypto analytics firm Bitcoin Vector said that the current slowdown in bullish momentum might be a more serious warning sign for Bitcoin than many realize. According to the firm, Bitcoin’s price momentum doesn’t need to turn deeply negative before investors should pay attention.
Related Reading: Bitcoin Price Breaks 14-Year Support For The First Time In History, Analyst Predicts $50,000 Target
Bitcoin Vector pointed out that the Glassnode momentum indicator, which measures how fast and strongly prices move in a given direction over a period, has dropped sharply in recent days. The firm noted that while many focus on when momentum turns negative, the key level to watch is actually +0.5. According to their analysis, when price momentum falls below +0.5, it’s the first sign that the upward trend may be fading and sellers could be taking over.
The analytics firm revealed that the last two times Bitcoin lost this critical level, its price structure changed. Those two times were: October 2025, when Bitcoin suddenly crashed to just above $100,000, and February 2026, when it fell to around $62,000. Bitcoin Vector noted that these moves were marked by a weakening spot CVD (cumulative volume delta), sellers regaining control, and a worsening price structure.
Recent on-chain data shows that price momentum is still above +0.5, sitting at around +0.7. “But if it loses that level while Spot CVD keeps weakening, caution rises fast. That would be the first signal that deterioration is starting beneath the surface,” Bitcoin Vector concluded.
In short, the world’s largest cryptocurrency seems to be at a critical point. The slowing price momentum could be a sign of what’s to come over the next few weeks.
Bitcoin Price At A Glance
As of now, BTC is trading at around $75,950, down more than 2% in the past 24 hours.
Related Reading: Bitcoin Upper Trendline Resistance Is Holding Price Back, Can It Push It Below $60,000? Analyst Answers
Featured image from iStock, chart from TradingView
Frequently Asked Questions
Here is a list of FAQs based on the topic This Bitcoin momentum signal appeared just before last Octobers crash could another downturn be on the way
BeginnerLevel Questions
Q1 What is a momentum signal in simple terms
A Its a technical indicator that measures how fast and strongly the price of Bitcoin is moving When the signal turns negative it suggests the price might be losing steam and could reverse downward
Q2 Did this signal actually predict the October crash
A Yes the article points out that a specific momentum signal flashed a warning just before the sharp price drop in October 2023 Its not a guarantee but it was a notable early warning
Q3 Does this mean a crash is definitely coming now
A No No single signal can predict the future Its a warning sign that traders watch but other factors could prevent a crash
Q4 Should I sell my Bitcoin because of this signal
A Not necessarily This is a technical alert not a sell order Many investors use it as a reason to be cautious set stoplosses or wait for confirmation before making a move
Q5 How can I check this momentum signal for myself
A You can look for it on trading platforms like TradingView Its often based on the MACD or RSI indicators Look for a bearish crossover or a drop below a key threshold
Intermediate Advanced Questions
Q6 What specific momentum indicator is being referenced
A The article likely refers to the weekly MACD histogram turning negative or a bearish crossover on the weekly chart This is the same pattern that appeared before the October 2023 crash
Q7 How reliable is this signal historically
A Its been a decent warning sign in several past corrections but its not perfect It has produced false signals during strong bull runs Its reliability increases when confirmed by other indicators
Q8 Whats the difference between this signal and a simple overbought reading
A An overbought reading just means buying has been strong The momentum