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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
Authors credited by the source: Christian Encila
Published by Holder based on an external source.
