After a significant rally, Bitcoin's price has settled slightly below $105,000, with some traders expressing concerns over a possible correction.
Overview of Current Bitcoin Situation
Bitcoin prices remain under pressure following a promising multi-month rally. Analyst Crypto Seth posted a chart indicating Bitcoin price is facing resistance in the $108,000 - $111,000 range, which aligns with the 2024 all-time high. One critical level currently is $93,000, and traders believe if the price falls below this level, a sharp drop to around $73,800 could occur.
Importance of RSI Divergence
Analyst CryptoPatel highlighted a bearish divergence forming on the five-day chart for Bitcoin. While the price is recording higher highs, the Relative Strength Index (RSI) is showing lower highs. This pattern signals a potential decline in buying momentum. CryptoPatel compared the current pattern to a similar one observed around the $16,000 level in late 2022, where a bullish divergence preceded a significant upward movement.
Key Support Levels to Watch
Bitcoin continues to respect its larger uptrend from the 2023 lows. The $63,000 level is significant support from late 2024, while $42,000 represents a longer-term level from earlier consolidation. Many analysts agree that if momentum continues to weaken, these zones may be tested.
Current charts and technical analysis emphasize the need for careful watching of potential support levels and Bitcoin's price correction, which could lead to significant changes in the market.
