Bitcoin's bearish divergence signals a possible price correction toward $85,000, reminiscent of the declines seen in 2019 and 2021. As BTC struggles to maintain momentum, traders are watching key indicators for signs of a deeper pullback.
Key Takeaways
- Resistance at $106K–$108K: Failure to break through risks a drop to $100,000.
- RSI Divergence: Weekly charts show weakening bullish momentum.
- Profit-Taking Signals: Rising NUPL metrics suggest increased sell pressure.
Short-Term Bearish Indicators
Bitcoin has traded sideways since hitting its all-time high ($112,000) in late May. The lack of upward movement raises questions about the rally’s sustainability.
1. Failed Breakout at $106K
Analyst Michaël van de Poppe identified $106,000** as a critical resistance level. Recent rejections at this price triggered liquidations, pushing BTC back to **$104K–$105K**. A drop below **$105K could target the $100,000 liquidity pool by June—a potential buying opportunity if leveraged longs are wiped out.
👉 Why $100K is a key level for Bitcoin bulls
2. Bearish RSI Divergence
Bitcoin’s weekly chart reveals a classic divergence:
- Price: Higher highs.
- RSI: Lower highs.
This pattern preceded major corrections in 2019 and 2021. A retracement to the 50-week EMA (~$85,000)—a historical support level—could follow.
3. NUPL Signals Profit-Taking
The Net Unrealized Profit/Loss (NUPL) metric nears 0.5–0.6, a zone associated with local tops. High profit-taking likelihood mirrors setups before past crashes.
Long-Term Bullish Outlook
Despite short-term risks, 30+ indicators predict a bull market peak at $230,000**. Some analysts project **$150,000+ by year-end, suggesting volatility may precede further gains.
FAQ Section
1. What’s causing Bitcoin’s current price stagnation?
Sideways trading follows a rejection at $106K resistance, with low momentum and profit-taking pressure.
2. How low could BTC drop if the correction deepens?
Historical patterns suggest a pullback to $85,000 (50-week EMA) is plausible.
3. Is now a good time to buy Bitcoin?
Dips to $100K or below may offer entry points, but monitor RSI and NUPL for confirmation.
👉 Expert insights on Bitcoin’s next move
Final Note: This analysis highlights potential risks but avoids investment advice. Always conduct independent research amid market volatility.