2024

Bitcoin

when

Divergence

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Bitcoin (BTC) is <a href="https://twitter.com/100eyesCrypto/status/1762463324438987211" rel="noopener noreferrer nofollow">showing</a> signs of potential overheating as a key bearish signal emerges.&nbsp;
According to the 100eyes Crypto Scanner, a notable bearish divergence has been spotted in the BTC-USDT pairing. This hints at possible downward pressure on the leading digital currency.&nbsp;
<blockquote>
 🚨 Crypto alert:[<a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BTC</a>-<a href="https://twitter.com/hashtag/USDT?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#USDT</a>] RSI Bearish Divergence (1h) <a href="https://t.co/XSc3LzMwPc" rel="noopener noreferrer nofollow">pic.twitter.com/XSc3LzMwPc</a>— 100eyes Crypto Scanner 🌐 (@100eyesCrypto) <a href="https://twitter.com/100eyesCrypto/status/1762463324438987211?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">February 27, 2024</a>
</blockquote>
This comes amid Bitcoin's price <a href="https://twitter.com/glassnode/status/1762468084638433484" rel="noopener noreferrer nofollow">rallying</a> to a remarkable $56,812.57 after a 10.6% increase, according to CoinGecko data.
<h2 id="understanding-bearish-divergence">Understanding bearish divergence</h2>
A bearish divergence occurs when the price of an asset, such as Bitcoin, marks a new high, but a related indicator, like the Relative Strength Index (RSI), fails to record a new high.&nbsp;
This <a href="https://u.today/xrp-shows-bullish-divergence-after-price-slump" rel="noopener noreferrer nofollow">divergence</a> between the price and momentum indicator often signals a weakening in the prevailing upward trend, suggesting that the rally may not be sustained and a price correction could be imminent.&nbsp;
Specifically, the RSI bearish divergence noted by the 100eyes Crypto Scanner indicates that, despite Bitcoin's recent price gains, the momentum behind these gains is slowing.
In the meantime, the Bitcoin market is experiencing intense speculation based on activity across exchanges, capital flows, derivatives leverage and institutional demand, according to Glassnode.
<h2 id="bullish-case-emerges">Bullish case emerges</h2>
Despite the bearish signals, there is contrasting sentiment observed on the market, indicating a growing risk appetite among Bitcoin investors.&nbsp;
CryptoQuant has noted that <a href="https://u.today/bitcoin-etfs-witness-explosive-520-million-inflows-while-blackrock-breaks-records" rel="noopener noreferrer nofollow">Bitcoin</a> has broken through a key resistance level that had been in place for 2-3 years. This indicates that the only major resistance left is the last cycle's high of $68,000, implying potential for a further upside.
Bearish indicators should not be ignored, but the underlying market dynamics and investor sentiment could support continued growth in Bitcoin's value.

Bitcoin (BTC) Getting Overheated as Key Bearish Signal Appears

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