Bitcoin secured a closing price above $81,000, representing the highest level since early May. From a technical perspective, this is a very strong signal, as the market is once again beginning to test the upper boundary of its structure. However, warning indicators are emerging that could complicate further growth in the short term.
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RSI warns of exhaustion, reaction to divergence will be key
The main risk at this point is a double bearish divergence on the RSI. While Bitcoin’s price has created higher highs, buying momentum is no longer confirming this movement with the same intensity, which often indicates short-term exhaustion or an approaching consolidation. However, a truly strong bull market can be recognized by its ability to ignore such technical indicators and break higher despite weakening RSI.
A potential decline and testing of lower supports should not necessarily be understood as the end of the bullish scenario, but rather as its postponement and a cleansing of an overheated market. Given the weaker weekend liquidity, significant movements cannot be expected in the coming hours. The decisive factor will be the return of full liquidity during the following week.
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What’s driving the price increase and how is the market reacting?
Yesterday’s price increase was primarily driven by a slight decline in yields across the entire yield curve. Although it was a minor shift, the market is evidently seizing on any positive news, which is typical for a bullish phase.
During periods of negative conditions, the market tends to stagnate. However, as soon as a more favorable environment emerges, the price reacts with rapid growth and continues its positive trend.
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