Bitcoin is Topping Out? Key Levels & Bearish Signs to Watch
After weeks of bullish momentum, Bitcoin (BTC) has once again hit a notable high—$97,600, a level previously highlighted in my analysis. While many in the market anticipated a continued rally toward $100K or even $110K, the price action tells a more cautious story.
Volume-Price Divergence: A Warning Signal?
Despite this fresh peak, BTC failed to maintain its upward momentum. More importantly, we're now seeing a clear divergence between price and volume. The volume has noticeably dropped, suggesting that buying interest is fading even as price climbs. Historically, such divergences often signal exhaustion in a rally and precede a correction.
Is $97,800 the Top?
Based on the current market structure, there's a 70% probability that $97,800 is the peak of this wave. If BTC does push higher, $98,500 may be the maximum reach before a reversal. With CME Futures closing the week around $97,600, it's likely that Bitcoin will consolidate around the $97,000 zone in the coming days before choosing its next direction.
Bearish Outlook: Retracement on the Horizon
My bias remains bearish in the short term. The recent rise resembles a V-shaped rebound, and such sharp climbs are often followed by equally sharp corrections. After a brief consolidation at the current highs, I expect BTC to pull back toward $91,000, with extended downside potential to $87,000–$85,000.
Key Levels to Watch
Resistance:
$97,400
$98,200
$98,500
$99,500
Support:
$96,000
$94,800
$93,000
$91,600
Final Thoughts
Traders should stay cautious and watch volume closely. If price continues to rise on declining volume, it could be a bull trap. The coming days will be critical in determining whether BTC can sustain its highs or enter a deeper correction.
Stay informed, stay sharp.
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