Bitcoin Now Showing Same Critical Divergence That Marked the 2021 Bull Run Peak
That eerie feeling is back—Bitcoin's flashing the exact same divergence pattern that signaled the top back in 2021. You remember how that ended.
Technical Déjà Vu
Price keeps grinding higher while momentum indicators slump. Sound familiar? It’s the classic bearish divergence that historically foreshadows major reversals—not a glitch, not a coincidence.
Market Psychology at Play
Retail pours in, euphoria peaks, and smart money quietly scales out. The charts scream caution while Twitter screams 'to the moon'. Someone’s going to be left holding the bag—again.
Institutional Irony
Even Wall Street’s shiny new Bitcoin ETFs can’t override this signal. They might delay the inevitable, but they won’t cancel gravity. Because when has finance ever avoided repeating its own mistakes? Exactly.
Bitcoin Bearish Divergence/Ali Martinez
While this happened, the RSI was making lower lows. After the November peak, BTC crashed, reaching a bottom of $15,500 in November 2022.
Bitcoin has recently experienced a similar development, with its January peak of $109,354 and August ATH of $124,457, marking higher high formations. If history repeats, Martinez suggests this could be a sign of an early bull market top.
Mere Coincidence?
Interestingly, Bitcoin has a history of responding positively to bearish speculation. An instance occurred when veteran trader Peter Barndt highlighted a possible recurring double top pattern formation in June, which he noted would likely lead to a 75% crash.
Notably, he also emphasized that it shares similarities with that seen in the 2021 bull cycle, with Bitcoin peaking in its development. The outlook created panic, but Bitcoin responded with a strong performance, rebounding from the June lows to its recent ATH conquest.
Moreover, analyst Merlijn The Trader believes the recent downtrend is a mere retest. He insisted that Bitcoin was retesting January’s resistance to solidify the area as support before its next leg up.
