Is Bitcoin’s Hidden Divergence Signaling Trouble Ahead? Key Levels to Watch
A significant warning signal has emerged on Bitcoin's chart, indicating potential challenges ahead.
Analyst Josh from Crypto World highlights a hidden bearish divergence, suggesting that while the price may seem strong now, it could lead to a continuation of the broader bearish trend.
This hidden bearish divergence occurs when Bitcoin’s price forms lower highs, while the Relative Strength Index (RSI) shows higher highs. Although this divergence typically indicates a downward trend, it has yet to be fully confirmed.
Bitcoin is currently testing resistance around $64,500. A breakthrough at this level could signal a continuation of the short-term bullish trend, but failure to surpass it may result in a return to bearish momentum. Key support levels to monitor are around $63,000, and further down between $60,200 and $61,200, where a breakdown could occur.
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Additionally, Bitcoin, Ethereum, and Solana are displaying overbought signals, indicating limited room for price growth without a reset. A short-term pullback or consolidation could help reset the RSI and facilitate another upward movement.
Looking ahead, Bitcoin is in a short-term bullish phase, but this could shift rapidly. A successful breach of the $64,500 resistance might propel the price toward $79,000, a significant historical resistance level. Conversely, failure to break through could trigger a resumption of the bearish trend. Observing the next few days will be crucial for determining whether a breakout or continued bearish action will unfold.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
