Bitcoin News Today: Bitcoin Faces Key Support Test as Bearish Divergence Signals Potential 18% Correction

Bitcoin’s recent price action has raised concerns about a potential mid-cycle correction, with technical indicators suggesting a possible drop toward $92,000. The cryptocurrency is currently testing critical support levels, particularly $115,000, which analysts identify as pivotal in maintaining the ongoing bullish trend. A breakdown below this level could trigger a cascade of liquidations and drive prices down toward $104,000 or lower [1].

The weekly Relative Strength Index (RSI) is showing bearish divergence, a classic sign of weakening bullish momentum. While Bitcoin has formed higher highs in recent months, the RSI has created lower highs, signaling a possible deep pullback. Historically, similar RSI patterns have preceded major corrections, including the 2021 market top [1].

In addition, Bitcoin’s Net Unrealized Profit/Loss (NUPL) metric is currently in the 0.5–0.6 range, a level historically associated with local market tops. With over 92% of Bitcoin’s supply in profit at current prices, increased selling pressure is likely. Past occurrences in 2020, March 2024, and January 2025 all preceded sharp corrections, suggesting a similar pattern may unfold soon [1].

Should the bearish divergence persist, Bitcoin could retrace toward its 50-week exponential moving average (EMA), currently near $92,000. This level has historically acted as strong support during mid-cycle corrections. However, some bullish analysts remain optimistic, forecasting that Bitcoin could still reach $138,000 to $150,000 later this year. This divergence in views reflects the contested nature of the current market outlook [1].

Market analysts emphasize the importance of holding the $115,000 support level to sustain the current uptrend. Recent trading data shows increased long-side liquidations and volatility, further underlining the fragility of the current price structure. If the $116,000 level is not reclaimed shortly, the odds of a deeper correction toward $104,000 will increase [1].

Bitcoin’s current price environment reflects a mix of caution and optimism among traders. While bearish technical indicators signal the possibility of a significant pullback, some bullish forecasts remain intact. As the market evolves, traders are advised to closely monitor key support levels and technical signals for further clarity [1].

Source: [1] Bitcoin Bears Divergence Suggests Possible Correction Toward $92,000 Amid Key Support Tests (https://en.coinotag.com/bitcoin-bears-divergence-suggests-possible-correction-toward-92000-amid-key-support-tests/)