Bitcoin's Bearish DivergenceBitcoin has slipped to $116,605, down 1.5% on the day, and the daily chart is beginning to show signs of weakness following a period of sideways consolidation below key resistance.
The most notable development is a clear bearish divergence on the RSI. While price pushed to a higher high around $122K earlier this month, the Relative Strength Index (RSI) made a lower high, signaling that momentum was fading even as price climbed. This kind of divergence – particularly when it appears after an extended run – often foreshadows a correction or at least a short-term pullback.
Adding to the caution, RSI was deep in overbought territory before beginning its retreat, further supporting the case for a cooldown. Volume also looks unconvincing, and we’re seeing a potential drop in demand as Bitcoin tests support.
Immediate support sits near $112K, and a break below that would likely open the door for a move toward the $105,787 zone. On the upside, bulls would need to reclaim $122K with conviction to invalidate the bearish signal and reignite momentum.
Overall, the chart is tilting slightly bearish in the short term, and traders should watch closely for whether support holds or if this divergence marks the beginning of a deeper correction.
