Bitcoin appears to be losing momentum after hitting resistance indicated by the Relative Strength Index (RSI), a popular technical analysis tool used to measure the speed and change of price movements. The RSI resistance suggests that Bitcoin’s recent price gains may be stalling, leading to a potential correction or consolidation phase.
Currently, Bitcoin has experienced a significant pullback from its October 2025 all-time high of around $126,000, dropping approximately 25% to about $94,000. This decline coincides with the 50-day moving average approaching a crossover below the 200-day moving average, a bearish technical pattern known as the “death cross.” Historically, this pattern has often preceded local market bottoms for Bitcoin, which raises the possibility that the current momentum loss could be part of a larger corrective phase rather than a prolonged downtrend[3].
Several factors contribute to this loss of momentum beyond technical resistance. Macroeconomic conditions, such as the Federal Reserve’s continued focus on tightening liquidity and controlling inflation, have created a challenging environment for Bitcoin. The Fed’s hawkish stance increases borrowing costs, which tends to reduce risk appetite among investors, negatively impacting assets like Bitcoin that thrive in low-interest-rate environments[2].
Additionally, institutional outflows have intensified the selling pressure. Since 2022, trust issues stemming from events like the FTX collapse, which left unresolved liabilities and payouts, have eroded confidence among large investors. This erosion has led to significant institutional redemptions, further reducing liquidity and amplifying downward price movements[2].
Despite these headwinds, some analysts remain cautiously optimistic. Bitcoin has maintained support above the $100,000 level for six consecutive months, which was previously a resistance zone. This shift from resistance to support is generally considered a bullish sign. Moreover, on-chain data and moving average analyses suggest that Bitcoin could still be in a steady uptrend, with some projections anticipating at least a doubling from current levels over the medium term[1].
Historical price patterns also indicate that November has often been a month of strong gains for Bitcoin, with average increases around 40%. This historical tendency suggests that the current pullback might be temporary, potentially followed by a rebound if broader market conditions improve[4].
In summary, Bitcoin’s momentum loss after hitting RSI resistance is influenced by a combination of technical signals, macroeconomic tightening, and institutional selling. While these factors have triggered a notable correction, historical patterns and on-chain data provide some grounds for cautious optimism about Bitcoin’s longer-term prospects. Investors should closely monitor upcoming Federal Reserve decisions and institutional activity, as these will likely play critical roles in determining Bitcoin’s near-term trajectory.