Bitcoin Flashes Caution As RSI Repeats Post-Halving Behavior - Here's Why | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Bitcoin is flashing warning signs as its Relative Strength Index (RSI) shows a familiar bearish divergence pattern, the 2020 halving. This classic setup often precedes a period of correction or consolidation, urging traders to stay alert

Momentum Weakens Despite Higher Highs: RSI Signals Caution

Crypto analyst TrendPro revealed that Bitcoin is currently exhibiting a bearish RSI divergence, a setup reminiscent of the post-halving structure seen in 2020. According to the analyst, while price action continues to print higher highs, the RSI is forming lower highs, indicating weakening momentum beneath the surface. This classic divergence is often viewed as a sign that bullish strength is beginning to wane.

Related Reading: Bitcoin To Rally To $144,000 As Bull Flag Pattern Forms – AnalystTrendPro emphasized that this type of setup has historically led to either a healthy correction or a period of sideways consolidation. Drawing parallels with the 2020 halving cycle, the analyst noted that such phases often serve as cooling-off periods before the next significant leg higher

BTC mirroring past trend | Source: TrendPro on XLooking at the liquidation heatmap data from Coinglass, TrendPro pointed out a large cluster of short liquidations positioned between $110,000 and $120,000. The analyst explained that if Bitcoin manages to break above the $110,000 threshold, it could see a rapid price surge toward $119,000–$122,000, driven by forced short covering and a cascade of liquidations in that zone.

On the downside, TrendPro also warned of significant long liquidations building around the $94,000–$96,000 range. A drop into this area could trigger a liquidity sweep, shaking out overleveraged long positions. According to TrendPro, this kind of flush often resets market conditions and could provide a stronger foundation for the next move upward once weaker hands are cleared out.

Shakeout Or Breakout? Bitcoin At A Crossroads

TrendPro went further to ask: “Do we need a shock before higher?” The answer? “Not necessarily.” However, TrendPro pointed out that many bull markets have had a shakeout phase, suggesting that a temporary correction could be a healthy part of the cycle. If BTC holds above $106,000 and breaks $110,000, the analyst noted that a short squeeze to $120,000+ is possible.

Related Reading: This Bitcoin Bull Market Cycle Breaks The Mold With Unusually Waning Network ActivityHowever, if BTC can’t break higher, a pullback to $95,000 to reset leverage and RSI would be healthy. This kind of move would clear out over-leveraged positions and help rebuild momentum, without breaking the long-term trend. The idea is not bearish — it’s a potential setup for a stronger base.

In summary, TrendPro advised watching the $110,000–$112,000 breakout zone as a move above this level could trigger a short squeeze. If the price drops, $94,000–$96,000 is the key support zone for a bullish reset. Despite short-term fluctuations, the long-term bull trend still looks intact.

BTC trading at $108,079 on the 1D chart | Source: BTCUSDT on Tradingview.comFeatured image from Pixabay, chart from Tradingview.com Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.