Bitcoinist 2025-07-06 02:30:13

Bitcoin Flashes Caution As RSI Repeats Post-Halving Behavior – Here’s Why

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. TrendPro 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. Looking 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. However, 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.

Related News

Hyper Tops Total Profit List with $11.61M Long BTC...
06 Jul 2025
Hyper Builds Massive $11.17M Long Position in BTC,...
06 Jul 2025
Bitcoin Faces Significant Decline in User Activity...
06 Jul 2025
Bank Insider Admits to Nearly Decade-Long Scheme o...
06 Jul 2025
Ethereum Price to Hit $6K This Year? Analysts Make...
06 Jul 2025
Ethereum Reserves On Binance Hits 2023 Level — Wha...
06 Jul 2025

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.

Bitcoin Flashes Caution As RSI Repeats Post-Halving Behavior – Here’s Why

Most Read News

Related News