Over the past week, Bitcoin has set three new all-time highs, but analysts express caution due to signs of declining momentum.
Bitcoin Consolidation Triangle
The Bitcoin chart reveals a symmetrical triangle pattern, formed by rising lows and falling highs. This pattern often indicates consolidation before a breakout, but the direction remains uncertain. Resistance at $93.4k has emerged as a key hurdle, with a potential breakout leading the price toward $100,000. Conversely, support at $90,600 is crucial, and if breached, it could lead to a sharp decline toward $75,000.
RSI Signals Bearish Divergence
The RSI, a key momentum indicator, suggests weakening bullish pressure. While Bitcoin's price reaches record highs, the RSI has shown lower peaks, forming a bearish divergence. This divergence typically signals potential exhaustion in an uptrend. Analysts note that a breakdown in RSI below its trendline could trigger bearish price action.
Bitcoin Key Levels to Monitor
Two critical levels dominate the current Bitcoin chart analysis. On the upside, $93,400 remains a pivotal resistance point. A breakout here could fuel a rally to $100,000. On the downside, $90,600 is an immediate support level. A failure to hold this level may lead to a drop toward $75,000, representing a prior consolidation zone.
Analysts recommend Bitcoin holders remain vigilant and wait for a clear breakout from the triangle before making trading decisions. The RSI divergence further supports a cautious stance.
