Bitcoin Faces Bearish Divergence Amid Market Volatility

According to Cointelegraph, Bitcoin (BTC) is grappling with bearish divergence signals as traders brace for potential declines. The cryptocurrency closed May with an 11% gain, yet the focus remains on the weekly close, which is crucial for market participants. Bitcoin's price is attempting to reclaim the $105,000 level, having faced sustained downside pressure throughout the week. This has brought BTC back to significant support levels established earlier in the bull market, notably the local top from December 17, 2024, at approximately $104,450. Popular trader Matthew Hyland emphasized the importance of the weekly close, describing it as "pivotal." He highlighted a bearish divergence between Bitcoin's price and the relative strength index (RSI) on weekly timeframes. RSI, a classic trend strength indicator, measures momentum at specific price points. Fellow trader Titan of Crypto echoed these concerns, noting that the divergence could have broader implications for bullish sentiment. He pointed out the formation of a potential RSI bearish divergence on the weekly chart, which remains unconfirmed but warrants attention. Titan of Crypto also referenced fair value gaps (FVGs) measured by Fibonacci retracement levels, indicating imbalances between buyers and sellers as the price ascended to its current area. Two FVG zones of interest are identified at $97,000 and $90,000. Despite the recent volatility, trader CrypNuevo remains optimistic about Bitcoin's overall bullish market structure. He suggested that the $100,000 level could act as a price magnet if the market continues to decline. CrypNuevo noted that liquidity tends to accumulate at psychologically significant levels, making a retest of $100,000 plausible. He anticipates a temporary dip below this level to shake the market, but believes the bull market support at $84,000 will catch up to the price, maintaining the uptrend. CrypNuevo's analysis underscores the importance of healthy market structure, even as Bitcoin experiences an 8% drop over the past week. The article concludes with a reminder that investment and trading decisions involve risk, and readers should conduct their own research before making any moves.