Bitcoin’s daily chart reveals bearish divergence signaling a potential correction to the $104000 support level soon.
Fibonacci levels and Elliott waves suggest Bitcoin could drop before resuming a rally toward $121000 target zones.
Volume profile and momentum indicators show weakening buying interest supporting a short-term price retracement phase.
Bitcoin’s (BTC) daily chart reveals a bearish divergence that may push the price down to $104,000. This technical signal was highlighted by market analyst BigMike7335 on May 28, 2025. The current price stands around $108,925, with a minor decrease of 0.05%. Key Fibonacci levels and volume profile data point to significant market activity between $89,406 and $108,106.
Source: X
The price chart indicates a potential pullback following the third wave of a five-wave Elliott pattern. Analysts track this movement carefully, considering possible support and resistance levels ahead.
Bearish Divergence and Its Impact on Bitcoin Price
The bearish divergence on the daily chart is identified by the relative strength index (RSI) at the top. The RSI has dropped below the 70 level, signaling weakening momentum despite recent price gains. This suggests that buyers might be losing strength, potentially leading to a price correction.
Bitcoin’s price has recently hit a peak near $110,000 but shows signs of reversal. The chart reflects that after the third wave peak, the price may decline to complete the fourth wave. The retracement could bring Bitcoin closer to the $104,000 support zone, a level coinciding with the 1.618 Fibonacci extension at $104,932.
This bearish pattern aligns with volume profile observations. The highest traded volumes are visible around $89,406 and $108,106, indicating strong market interest and possible support zones. A drop below these levels might trigger further declines, while recovery above $110,302 could sustain bullish momentum.
Elliott Wave Analysis and Fibonacci Levels
The chart illustrates a clear Elliott wave count. Bitcoin is currently in the third wave of the five-wave structure, which typically represents a strong upward trend. However, this wave seems to be reaching exhaustion, consistent with the bearish divergence.
Fibonacci retracement and extension levels are crucial for identifying potential reversal points. The 2.618 Fibonacci extension marks a possible target near $121,154 if the price resumes its upward move after the correction. Meanwhile, the 0.618 retracement level at $90,883 remains a key support if the price falls.
The volume bars indicate healthy buying interest during the previous waves but show signs of slowing, which could precede a correction. The stochastic oscillator at the bottom supports this by signaling overbought conditions.
Market Outlook and Key Questions
The critical question now is whether Bitcoin will respect the bearish signals and correct to $104,000 or push higher toward the $121,000 level. Traders are watching these levels closely to confirm the next move.
The chart’s technical indicators suggest caution, with momentum slowing and volume tapering. However, the Elliott wave theory allows room for recovery after the fourth wave correction, possibly leading to a new high.
Overall, Bitcoin’s price action in the near term appears balanced between a corrective pullback and potential bullish continuation. The market will likely react strongly to the $104,000 support and the $110,000 resistance levels.
