$BTC 🚨🚨🚨🚨🚨🚨🚨🚨
Divergence Between Bitcoin & Weekly RSI
The first warning signal comes from the Relative Strength Index (RSI) on the weekly timeframe. Analysts are concerned as this signal is very similar to the setup observed in 2021.
According to analyst Onur Barik, the current weekly chart structure of Bitcoin resembles its peak in 2021 in a worrying way. Specifically, when Bitcoin forms a higher high, the RSI shows a lower high — a classic bearish divergence.
Referring to this setup, Barik predicts a potential downtrend for Bitcoin.
“If this scenario plays out like 2021, a clean break of the trendline followed by a bearish retest could trigger a full structural shift,” he predicted.
However, from a fundamental perspective, Ki Young Ju, CEO of CryptoQuant, recently expressed a different view. He stated that “the Bitcoin cycle theory is dead.” In other words, comparisons with previous cycles may no longer be relevant.
Divergence Between DXY & Bitcoin
A recent report from BeInCrypto noted that the US Dollar Index (DXY) reached a two-month high after the Fed decided to maintain interest rates. Some analysts also warned that DXY may continue its upward trend in August, which could put downward pressure on Bitcoin.
This warning is increasingly credible as the chart reveals a new divergence between DXY and Bitcoin.