A bullish signal for bitcoin has been detected, raising the prospect of gains, but on-chain data is still warning of market weakness, blockchain media outlet Cointelegraph reported on Monday.

Coinvo Trading detected a bullish signal as the stochastic RSI of U.S. and Chinese 10-year government bond yields crossed with bitcoin’s weekly chart. The signal has historically foreshadowed a strong upward rally, and the same pattern appeared in 2021 when bitcoin surged 600 percent.

Analyst Matthew Hyland (매튜 하일랜드) also mentioned the possibility that BTC/USD could rebound if the dollar index (DXY) falls below 96. But the market has pointed to rising investor anxiety, noting that while gold has broken above $5,000, bitcoin has remained range-bound.

Despite the bullish signal, some analysis suggests a sustained recovery could be difficult due to a lack of buyers. Bitcoin spot cumulative volume delta (CVD) fell sharply to minus $194.2 million, strengthening selling dominance, and downside pressure is increasing as net inflows into bitcoin ETFs decline.

On-chain data provider Glassnode said, "Investors are losing confidence in the possibility of a short-term rise, and selling pressure will persist." Bitcoin still appears likely to face further correction amid strong resistance, selling pressure and macroeconomic uncertainty.