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- Sahana Vibhute
Sahana Vibhute
- Oct 16, 2025 04:42 UTC
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Bitcoin Price Analysis: Bearish Divergence Hints at a Possible Correction Ahead
Bearish RSI divergence suggests weakening momentum, hinting at a short-term correction despite Bitcoin’s higher highs near $115,900.
$110,000 support is crucial—a drop below could lead to a fall toward $95,000, while holding above may keep the path open toward $125,000.
The Bitcoin (BTC) price is showing signs of exhaustion after weeks of steady gains, hovering near $112,900 at the time of writing. Despite briefly testing highs above $115,900, the flagship crypto is struggling to maintain bullish momentum. Technical indicators now suggest a potential slowdown, as traders eye key support levels around $110,000. With market sentiment turning cautious, Bitcoin’s next move could determine whether it consolidates for another breakout or enters a short-term corrective phase.
Bearish Divergence Signals Possible Correction Ahead
The chart shared by analyst Ali highlights a striking similarity between Bitcoin’s current price structure and its 2021 market top. It shows that while Bitcoin’s price has been forming higher highs—currently peaking near $115,900—the Relative Strength Index (RSI) on the weekly timeframe has been printing lower highs, forming a clear bearish divergence. This indicates weakening buying momentum even as prices climb, often a precursor to a potential trend reversal or market correction.
The chart also outlines a curved resistance pattern, suggesting Bitcoin could be forming a “rounded top.” This structure typically appears when upward momentum starts fading and sellers begin to take control gradually. If Bitcoin fails to sustain above $110,000, the bearish divergence could play out, leading to a deeper pullback toward the $95,000–$100,000 range. Conversely, a breakout in RSI above its descending trendline could invalidate the bearish scenario, signaling renewed strength and opening the path toward $125,000 and beyond.
Wrapping it Up
In conclusion, the Bitcoin price appears to be approaching a critical inflection point, with technical indicators flashing early warning signs of a possible trend reversal. The bearish divergence between BTC’s price and RSI suggests fading momentum, similar to patterns seen before previous market corrections. While Bitcoin remains fundamentally strong, a short-term pullback toward the $95,000–$100,000 range cannot be ruled out. Traders should stay cautious around the $110,000 support, as the next move will likely determine whether BTC resumes its rally or enters a consolidation phase.
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