Technical Analysis Signals Possible Bitcoin Reversal
While forecasts generally remain optimistic about the Bitcoin price in the short and long term, some analysts warn of a possible imminent correction. Bitcoin is facing several technical divergence signals suggesting a fatigue in the current bullish momentum.
Firstly, a recent report from 10xResearch warns that Bitcoin has reached a resistance zone and is forming a price pattern similar to that of 2021 – with two peaks, the second being higher than the first. This same pattern seems to be repeating in 2025, highlighting troubling parallels between the two periods.
Moreover, analyst Matthew Hyland has observed a bearish divergence on the RSI indicator on the weekly chart, while Mitch Ray noted a bearish divergence with the MACD-H indicator on the daily chart. These technical signals suggest a loss of bullish momentum that could lead to a significant correction in the weeks ahead.
Institutional Interest, a New Key Factor ?
Interestingly, analyst James Van Straten also noted a divergence between the price of Bitcoin and that of MicroStrategy’s stock (MSTR). While the latter has dropped by about 50% from its peak, Bitcoin continues to reach new all-time highs.
Bitwise also projects that institutional capital inflows could represent up to 20% of the total Bitcoin supply by 2026.
These new institutional players could be a key difference between the current market and that of 2021, making direct comparisons potentially misleading. Their growing interest could indeed offset the worrisome historical parallels.
While Bitcoin’s bullish trend appears to be waning in the short term, institutional liquidity influx could play a decisive role in the market’s future evolution. Informed investors will need to remain vigilant to these divergence signals and keep a close watch on upcoming developments.
