Bitcoin’s Momentum Wobbles as Analyst Forecasts Correction Below $94K

Bitcoin reached $105,000 with a marginal gain of 0.03% in the last 24 hours but is down 3.5% from a week ago. Analyst Captain Faibik indicates that these gains alongside declining strength may suggest traders are buying at peak levels.

Bearish RSI Divergence Indicates Potential Weakness

The Relative Strength Index (RSI) has decreased after hitting near 80, currently at 61.88.
A downward RSI while prices increase can signal an impending pullback.
Faibik suggests a possible correction to the $92,000–$94,000 range.

$BTC shows a significant RSI bearish divergence on the weekly chart, indicating a potential major decline towards $92,000–$94,000.

Resistance Levels Challenge Price Movement

Bitcoin faces resistance around $108,000 and $109,000, established on May 19.
An ascending trendline from December 2024 has also limited upward movement.
Failure to breach these levels may prompt selling pressure.

Recent activity in the derivatives market shows:

Bitcoin futures and options trading volume increased by 1.60%, totaling approximately $100 billion.
Open interest decreased by 1.30% to nearly $70 billion, indicating some traders are closing positions.
Liquidations in long positions totaled $71 million over the past 24 hours.

Historical Context Reveals Mixed Signals

Bitcoin rebounded in 2022 after reaching lows near $16,000, building strength even as RSI rose.
Current RSI levels do not indicate oversold conditions and could signify caution.
Higher interest rates and increased institutional interest may alter Bitcoin's reaction to similar signals in the future.

Featured image from Trade Brains, chart from TradingView