Bitcoin Faces Bearish RSI Divergence, Key Price Supports in Focus After Parabolic Trend Retest
Bitcoin’s weekly technical analysis has revealed a bearish RSI divergence pattern echoing the 2021 cycle top, raising concerns about a significant market correction. Noted by traders and highlighted by Cointelegraph, this pattern could foreshadow a correction surpassing 50%, potentially targeting levels near $64,000. Technical indicators, including an inverse cup-and-handle formation and warnings from veteran analyst Peter Brandt, emphasize the critical importance of Bitcoin reclaiming its parabolic trendline to sustain the current bull market. Should Bitcoin fail to maintain this trend, its prospects of reaching the $150,000 price target could diminish, with risk of broader downside toward key support zones at $100,800 and $91,000. Brandt notes that, based on past cycles, a typical 50–60% drawdown is possible if the parabolic advance is lost. On-chain metrics provide a mixed picture: a sustained NUPL/MVRV ratio above 1.0 could revive bullish momentum, pushing the price back toward $150,000 or even $175,000. However, if selling intensifies, a loss of the 200-week EMA near $64,000 could signal deeper short-term weakness. Crypto traders are advised to closely monitor price movements around major support areas and watch for any repeats of the bearish RSI divergence, as these historically precede major corrections in the market. The overall outlook remains uncertain, with heightened risk of correction but continued long-term upside potential if bullish signals return.
Bearish
Technical analysis highlights that Bitcoin is facing a bearish RSI divergence similar to the 2021 market peak, historically a precursor to major corrections exceeding 50%. Warnings from respected traders and the failure to reclaim the parabolic trendline further increase the probability of a significant correction. Key technical levels around $100,800, $91,000, and the 200-week EMA at $64,000 are under scrutiny. Although there are bullish on-chain indicators such as the NUPL/MVRV ratio sustaining above 1.0, the prevailing sentiment and technical setup suggest a higher risk of short-term downward movement. Long-term upside is still possible if Bitcoin regains bullish momentum, but current signals underscore caution for traders and point to a predominantly bearish short-term outlook.