The token's price index is showing syndication with a possible rally on the horizon.
RSI divergence suggests that momentum is weakening despite recent price highs.
Key price levels could determine whether Bitcoin moves higher or lower next.
Bitcoin is trading at $91,606.68 after reaching three all-time highs last week, but technical indicators are now indicating possible volatility. The Relative Strength Index has turned bearish and the triangle shape on the chart suggests a major price move is imminent.
RSI Divergence Signals Loss of Momentum
As Bitcoin continues to rise in value, the RSI is trending in the opposite direction, which is usually a warning sign. This divergence suggests that buying momentum may be slowing down even as rates remain near record highs. Traders often view RSI divergence as an early indicator of a possible market correction.
The RSI on the 4-hour chart highlights lower highs, indicating weakening market momentum that could impact Bitcoin’s short-term price action. This is an important signal to watch because momentum plays a key role in sustaining upward trends.
Additionally, the divergence between price and RSI highlights the need for caution, especially as Bitcoin approaches important resistance and support levels.
Triangle Pattern Signals a Breakout
A triangle formation on the Bitcoin chart indicates a period of consolidation, where price action narrows over time. These patterns often precede a breakout, but the direction of the breakout remains unclear at this stage.
The triangle structure highlights a balance between buyers and sellers, indicating a decisive price move on the horizon. Traders often wait for clear confirmation of the breakout before taking a position on the exchange to minimize risk.
If Bitcoin breaks to the upside, bullish momentum could accelerate, while a break to the downside could lead to significant losses. This pattern makes the current price range critical for traders to monitor.
Major Price Levels Keep Market in Focus
BTC’s key support resistance at $90,600 is critical as a drop below this level could open the way for a drop near $75,000. Alternatively, if Bitcoin breaks above $93,400, it could pave the way for a rally towards the much-anticipated $100,000 milestone.
These levels represent hypothetical turning points that investors follow closely to predict the economy’s next big move. Whether BTC will continue its uptrend or experience a serious pullback depends on how it interacts with these valuations.
