- Bitcoin shows bearish divergence on RSI and TD Sequential flashes multiple sell signals.
- Analysts warn a failure to hold $95,500 could trigger a move toward the $93,000 support zone.
- Wyckoff distribution model suggests rising volatility as Bitcoin nears $97,000–$98,000 resistance.
Bitcoin (BTC) remains close to the $95,000 level after a strong rally in recent days. Technological indicators show signs that Bitcoin short-term momentum might be losing strength which requires attention. Analysts are pointing to bearish divergence on the Relative Strength Index (RSI) and fresh TD Sequential sell signals as reasons to watch the price action closely.
Bearish Divergence on RSI Raises Short-Term Risk
According to analysis prepared by Ali Martinez on X, Bitcoin recently broke above its 200-day Simple Moving Average. This technical event is usually seen as a positive development, but recent chart activity is sending mixed signals.
The relationship between Bitcoin price and RSI on the 4-hour scale shows that Bitcoin price elevates but the RSI forms reduced peak levels according to Martinez. This bearish divergence between price and RSI often indicates slowing momentum and the potential for a pullback. Martinez added that the TD Sequential indicator has flashed multiple sell signals on the same timeframe.
If Bitcoin fails to sustain price action above the $95,500 mark, a move toward the $93,000 support zone could be likely. Traders are advised to monitor these levels carefully as volatility could rise if support fails to hold.
Wyckoff Model Suggests Increased Volatility Ahead
According to an observation by trader Merlijn shared on X, Bitcoin appears to be following the Wyckoff distribution model. Merlijn mentioned that Bitcoin has recently exited the re-accumulation phase and could now be entering the final vertical push toward a distribution phase.
This stage often results in rapid price swings and increased market uncertainty. Bitcoin is now approaching resistance areas around $97,000 to $98,000, where strong selling pressure could emerge.
Meanwhile, on-chain data shows a split between short-term selling and long-term accumulation. This mixed sentiment, combined with weakening technical indicators, could create more volatility in the short term as Bitcoin navigates a crucial area.
