The RSI divergence suggests a possible short-term collapse, even as Bitcoin's higher bottom over $106,000 suggests strength.
The price may approach $110,000 if the $108,979 liquidity zone is broken; if it is not, lower support can be tested.
Traders are keeping an eye on the relationship between Bitcoin's momentum and resistance to determine whether a breakout or consolidation will determine the cryptocurrency's next move.
Despite the fact that bitcoin is now rising in value, there are conflicting technical indicators that indicate prudence may be necessary. At $107,539, the price of Bitcoin is still increasing and testing significant resistance levels. required. With a current price of $107,539, the cryptocurrency is still rising and testing important resistance levels.
A Resilient Uptrend With Divergences
The strength of Bitcoin's short-term trend is seen in its higher low pattern above $106,000, which gives traders more hope. This movement indicates strong demand as it comes after a notable comeback from sub-$100,000 levels. However, the Relative Strength Index (RSI) exhibits a bearish divergence as prices increase, making lower lows. These signals frequently point to a possible slowdown or temporary correction.
According to Bitcoin Hyper, a market analyst, the $108,979.3 liquidity zone remains a key resistance level. He explains that this area has consistently acted as a barrier, influencing price momentum and trader sentiment.
https://twitter.com/BitcoinHypers/status/1938325521223356555
Breaking above this point would open the path to the $110,000 psychological mark, though failure to do so could trigger a retest of support levels.
Resistance Levels Hold the Spotlight
The RSI's decline from peaks above 70 to the present level at 60 is another indication of the slowing of momentum that Bitcoin Hyper observes. Even though the structure is generally optimistic, this dip indicates that buyer enthusiasm may be waning. Traders are keeping a close eye on how the price moves with the $108,000 resistance, which has so far stopped a greater push upward.
Bitcoin’s past performance near liquidity levels adds context to its current position. Consolidation periods have frequently followed the prior strong rises, preparing the market for either a breakout or a regression. Bitcoin's rising trend indicates potential, but the RSI's bearish divergence warns of caution. The way that Bitcoin acts in the $108,000 barrier zone will determine a lot of its future trajectory.
