Bitcoin’s Big Warning: Bearish Divergence on the Horizon? 🥹
The chart shows Bitcoin’s price climbing to new highs, but the Capriole Bitcoin Macro Index (a mix of 60% of Bitcoin’s key on-chain and market metrics) isn’t following—it’s making lower highs. This mismatch, called a bearish divergence, has often signaled slowdowns or corrections in the past. Right now, Bitcoin’s trend line is still upward, but this divergence suggests it might struggle to push past $110K if the fundamentals don’t catch up.
My take? It’s a red flag for Bitcoin bulls. The price looks strong, but the underlying metrics are flashing caution. If Bitcoin can break this pattern and the index starts aligning with the price, there’s still hope for more gains. But for now, I’d keep an eye out for a potential pullback and tread carefully!
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