Bitcoin's Weekly Chart Signals Bearish Trend With 10% RSI Divergence

Bitcoin’s weekly chart is currently displaying a bearish signal, with the Relative Strength Index (RSI) declining while the price tests previous highs. This bearish RSI divergence suggests a potential weakening of the bullish momentum, as the RSI indicator fails to form higher highs despite the price reaching new peaks. This divergence is a concerning sign for bulls, as historical data shows that similar divergences have often preceded corrective phases in the market.

On the hourly chart, Bitcoin’s RSI remains neutral, hovering around the 50 mark with slight oscillations above and below. This reflects indecision in the short-term market direction, with no strong bullish momentum evident. The MACD on the same timeframe shows a mixed picture, with short bursts of positive momentum followed by similar-sized corrections. The MACD line remains close to the signal line, suggesting a range-bound structure and keeping traders cautious.

Bitcoin’s price action is tightly packed near resistance, with the $92,000 to $94,000 zone emerging as a key area to watch for potential downside. This zone has seen prior short-term activity and could act as a near-term magnet if the divergence continues to play out. For now, the price remains stable but under scrutiny, with traders closely monitoring the situation for any signs of a breakdown.

In summary, Bitcoin’s weekly chart is flashing a bearish signal with a bearish RSI divergence, suggesting potential exhaustion in the bullish trend. The hourly chart shows neutral momentum, with no strong directional bias. The $92,000 to $94,000 zone is a key area to watch for potential downside, as the price remains tightly packed near resistance. Traders are advised to remain cautious and monitor the situation closely for any signs of a breakdown.