In the last ten days, Bitcoin’s (BTC) price has fluctuated within a narrow range between $105,000 and $101,000. Most recently, BTC saw a 2.52% decline in the past 24 hours, falling to $103,300 on May 17. This downtrend has mirrored a similar decline in major digital assets like Ethereum (ETH) 
$2,406, escalating concerns among investors.
Technical Indicators Show Weakness
Experts point out three primary reasons indicating a potential decline in Bitcoin’s price. The first reason traces back to technical indicators showing signs of weakening and potential corrections. A decrease in the number of daily active addresses and new address openings on the Bitcoin 
$75,924 blockchain has been observed recently. Despite these developments, prices have continued to rise, highlighting a classic case of negative divergence.
Current technical analyses reveal dwindling momentum in the market, prompting cautious behavior among investors. Experts suggest that this data could signify an imminent correction movement. The emerging divergence on the chart strengthens the likelihood of the market moving downward in the short term.
Macroeconomic Uncertainties Persist
Global macroeconomic uncertainty stands out as another factor. The monetary policies adopted by the U.S. Federal Reserve (Fed) have caused fluctuations in cryptocurrency markets. Specifically, the Fed’s tightening actions are believed to steer investors away from risky assets.
Moreover, ongoing trade wars initiated by the U.S. administration continue to impact financial markets. These developments do not merely affect cryptocurrencies but also create stress across all investment vehicles.
Historical Performances Raise Doubts
The third significant element is Bitcoin’s historical returns. Past occurrences in similar technical and macroeconomic settings have led to sharp pullbacks. Some analysts believe that the current consolidation phase might end in a correction. A market analyst commented, “The decrease in the number of new addresses could imply that the price cannot sustain its upward trend. This might exert extended pressure on the price.”
Warnings from experts and previous price movements lead to evaluations that a possible price drop might stem from the current signals. Especially when considering technical analysis alongside macroeconomic developments, it indicates continued risk for investors.
As navigating the cryptocurrency market becomes increasingly challenging, investors are advised to act cautiously. The $99,000 level remains an important psychological support point for the BTC price.
Following its sideways journey, the technical and macroeconomic indicators suggest an impending downward pressure on Bitcoin’s price in the short term. Investors are recommended to consider current data and analyses when making trading decisions. The trends in new and active address numbers could be decisive for future price movements in the upcoming days.
