Cooling off from its recent run to a new all-time high last week, Bitcoin is now at a pivotal moment as its price dips below $105,000, with experts issuing a stark warning of a bearish divergence.
In a recent post on X, the prominent crypto trader and analyst, Willy Woo, highlighted a potential bearish divergence on Bitcoin’s weekly chart, a technical pattern that could signal an impending reversal or prolonged stagnation.
The divergence occurs when the price fails to confirm the momentum shown by indicators like the Relative Strength Index (RSI), often a precursor to sideways or downward movement.
Woo’s analysis gives Bitcoin a tight window of 2 days and 16 hours to rally and avoid printing this bearish signal. A failure to do so could usher in a “sideways summer,” a period of low volatility that has historically frustrated traders. However, Woo’s analysis is argued by other traders, with an user stating that this is not a valid bearish RSI divergence.
“A proper one requires both RSI peaks above 70, with the second one lower, while price makes a higher high,” noted the user. “Here, RSI doesn’t even reach 70—so it’s not a textbook divergence, just potential momentum weakness at best.”
At the time of writing, Bitcoin is trading near $105,285—down 5.42% in the past 7 days. It has a 24 hour trading volume of $60.65 billion as of latest market data.
As Bitcoin approaches this critical juncture, traders are on edge, balancing optimism from global trade developments against technical warning signs. The next few days could determine whether Bitcoin surges to new highs or enters a phase of prolonged boredom for investors.
Also read: Bitcoin Is Perfected Capital: Saylor at Bitcoin Conference 2025
