Renowned crypto analyst Rekt Capital has issued a warning for Bitcoin investors, citing potential negative signals in price movement and the RSI indicator.
Price Action and Support
Bitcoin recently closed below its March low of $78,500, a level many viewed as near-term support. This close may now be seen as a potential resistance. On both daily and weekly charts, this change indicates a weakening market structure, increasing the likelihood of broader downside momentum.
RSI Signals and Their Importance
RSI indicators, which measure price momentum, are also signaling potential risks. Rekt Capital observed that in past cycles, Bitcoin formed lower price lows while RSI carved out higher lows, known as bullish divergence. While this typically precedes a reversal, it also indicates interim weakness before any recovery.
Potential Support Levels for Bitcoin
If the bearish pattern continues, Bitcoin may revisit or fall below the $70,000 level, which serves as both a psychological and technical support. A breakdown below $70,000 could have a negative psychological impact, particularly since many traders used this zone as an entry point.
While the overall trend is not yet confirmed as bearish, the lack of strength in price and momentum metrics requires caution. Traders and long-term investors should keep a close eye on RSI divergences and key support levels.
