Despite an 11% surge in May, Bitcoin (BTC) is facing scrutiny from analysts who point to emerging weaknesses. Popular analyst Matthew Hyland highlights a bearish divergence in Bitcoin’s chart. This occurs when the BTC price rises, but the Relative Strength Index (RSI) – a key momentum indicator – declines. Such a divergence often signals a weakening uptrend and could precede new price drops.
Unconfirmed, But Worth Watching
Fellow analyst Titan of Crypto also observes a nascent bearish divergence on the weekly chart, though he notes it’s not yet confirmed. Should this pattern solidify in the coming days, he anticipates a Bitcoin price drop to $97,900. If Bitcoin fails to hold this level, he suggests the digital currency could further decline to $90,000.
“After a more than 50% increase, a cooling-off period wouldn’t be bad. A healthy market structure is important,” acknowledges Titan of Crypto.
Bitcoin Uptrend Remains Intact
Even with potential price declines, the Bitcoin uptrend might remain intact. According to popular analyst CrypNuevo, the $100,000 level could act like a magnet if the BTC price continues to fall. “This is a strong psychological level, and liquidity tends to build up there. […] So I think we’ll likely drop to $100,000 and stay there for a few days. Even a temporary dip below this level would be logical,” he states.
“But in the bigger picture, we have support for the bull market at $84,000. The uptrend remains intact, and liquidity is above that,” CrypNuevo concludes.
This week, Bitcoin’s performance will heavily depend on macroeconomic data from the United States. Strong labor market reports indicating a robust economy will be particularly crucial. Positive developments in the trade war could also favorably impact Bitcoin, for instance, if a judge’s ruling cannot be easily set aside.
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