Bitcoin News Today: Bitcoin's Triple Bearish Divergence Signals ETF Rally's Fragile Hold

Bitcoin's price remains in a precarious position as mixed momentum underscores a bearish market backdrop, with traders closely monitoring technical levels and ETF flows for directional clues. The cryptocurrency, trading near $86.6K, is 31.3% below its October peak of $126.2K, reflecting broader market volatility and according to data, $3.5B in November ETF outflows. Despite recent $238M inflows into spot Bitcoin ETFs, which offer a stabilizing effect, the asset remains constrained by the $90K resistance level—a psychological and technical ceiling that has repeatedly stalled upward progress according to analysis.

Technical indicators paint a cautionary picture. A Chartered Market Technician, Tony Severino, has highlighted a "triple bearish divergence" on higher timeframes, where Bitcoin's price printed three successive higher highs while key oscillators like RSI and MACD showed weakening momentum. This pattern, he argues, signals a trend "dying under the hood" and warns of potential exhaustion in the market's bullish narrative. Severino's analysis aligns with broader sell-off dynamics, as Bitcoin recently dipped below $84K amid $2B in liquidations, driven by macroeconomic uncertainty and risk-off sentiment.

The interplay between ETF flows and price action remains pivotal. While spot Bitcoin ETFs saw a month-end inflow of $238M, Ethereum ETFs have also experienced mixed results. Ethereum (ETH) ETFs pulled in $175M over two days, with BlackRock and Fidelity leading contributions. However, ETH's price remains below $3,000, unable to reclaim its July 2024 peak despite inflows. This disconnect between ETF activity and asset performance underscores the fragility of the current market, where institutional outflows and macroeconomic headwinds continue to weigh.

Support levels are critical for Bitcoin's near-term outlook. A breakdown below $85K could accelerate selling toward $80K, confirming a bear-cycle correction typical of the 4-year Bitcoin pattern. Conversely, a sustained move above $88K might trigger a retest of $90K, though institutional outflows remain a risk. For Ethereum, the 50-day EMA at $2.42 represents a key hurdle, with failure to close above it prolonging bearish pressure.

The broader crypto market is underpinned by weak derivatives activity, particularly in XRP, where futures open interest has fallen to $3.57B. Meanwhile, the triple divergence flagged by Severino suggests a potential 50–60% retracement of Bitcoin's recent advance, targeting levels between $44,100 and $34,409. While such a scenario aligns with historical bear market corrections, traders are urged to manage risk carefully, as the divergence remains a setup rather than a guaranteed trigger according to technical analysis.

Bitcoin's path forward hinges on its ability to hold key support zones and sustain ETF inflows. For now, the market breathes cautious optimism amid a backdrop of technical fragility, with institutional sentiment and macroeconomic developments poised to dictate the next chapter in the crypto narrative.