Bitcoin Bull Run Faces Early Warning Signal—But Investor Flows Stay Bullish

Bitcoin's rally hits a potential inflection point as key indicators flash caution—yet capital keeps pouring in.

The Signal Everyone's Watching

A critical metric suggests the bull market might be peaking sooner than expected. Historically, this indicator has foreshadowed pullbacks, but current market dynamics aren't playing by the old rules.

Money Talks Louder Than Warnings

Despite the caution signs, net inflows into Bitcoin products remain strongly positive. Institutional buyers and retail FOMO are driving continued momentum—because who needs fundamentals when yields are juicy?

The Finance Jab

Traditional analysts keep waiting for the 'rational correction'—meanwhile, crypto markets are busy printing gains and leaving Wall Street's spreadsheets in the dust. Maybe efficiency isn't their strong suit.

Bottom Line: The indicator says 'slow down'—but the money says 'full speed ahead.'

The monthly chart shows that while BTC reached a new high in the July-August period, surpassing the December peak, the RSI moved in the opposite direction, forming a lower high.

The bearish divergence gains added significance as it coincides with BTC encountering resistance at a key trendline drawn from the previous bull market peaks of December 2017 and November 2021.

To cut to the chase, bulls should stay alert for potential bearish trend reversals. That said, the latest market flows suggest that traders are anticipating continued price gains.

"Blocks suggest traders are gearing up for further gains, with notable activity in December BTC call spreads ($125K/$160K). Ethereum's focus was on tighter topside, with $4,800 strikes active for September, and front-end pressure lifting," Jake Ostrovskis, OTC Trader at Wintermute, said in an email Thursday.

Block flows are large transactions privately negotiated over the counter and outside of the public order book. These transactions typically involve institutions and high-net-worth individuals.

The December call spread mentioned by Ostrovskis essentially bets on prices rallying to $160K and higher by the end of the year. The consensus is for a continued rally into the year-end and beyond, with prices reaching as high as $190,000. As of writing, BTC changed hands NEAR $110,500, representing a 4.6% loss for the month, according to CoinDesk data.