Don't let the green candles fool you – a hidden signal could wreck the rally!
Bitcoin ($BTC) has been on a jaw-dropping uptrend over the last two months, flashing nearly seven straight green weekly candles on the chart – a sign of intense buying pressure and growing investor confidence.
BTC Price: $107,666.67 (+0.13%)
We’ve officially entered price discovery mode, as BTC recently shattered its previous ATH of $110K on lower timeframes. With no historical resistance above, the sky's the limit... or is it?
But here's the catch:
Despite the hype, key technical indicators are flashing potential warning signs that could flip this bullish momentum on its head.
Stochastic RSI – Overbought Alert!
The weekly Stochastic RSI is already climbing into overbought territory, even before this week’s candle has closed.
Historically, this zone often marked areas to take profits or expect pullbacks.
If the blue and orange lines cross back below 80, that could signal fading momentum – especially if BTC fails to hit higher highs.
RSI – Triple Bearish Divergence Incoming?
The weekly RSI is nearing a major resistance trendline.
Past bull markets saw RSI peak at 89, then again at 80 – even as BTC made new highs. That’s classic bearish divergence.
If the RSI fails to break above 80 again, we could be staring at a triple bearish divergence, increasing the risk of a larger correction.
What Needs to Happen:
To keep this rally alive, Bitcoin must:
✅ Close multiple weekly candles above $110K
✅ Avoid a bearish cross on the Stochastic RSI
✅ See the RSI break above 80 to invalidate divergence
Failing to meet these? Expect heightened volatility and potential downside pressure as summer approaches.
Conclusion:
Bitcoin looks bullish – but caution is key.
Momentum is strong, but the next few weekly closes will determine if this is a breakout or a fakeout.
Stay sharp. Monitor the indicators. And remember…
Trade at your own risk!
Best regards,
OHRM ❤
Stay tuned for more updates!