Analysts Warn of 3 Bitcoin Divergence Signals in August
The post Analysts Warn of 3 Bitcoin Divergence Signals in August appeared on BitcoinEthereumNews.com.
In early August 2025, the crypto analyst community raises concerns about possible divergence signals on the Bitcoin (BTC) chart. These signals could mirror the sharp downtrend that occurred in 2021. Divergence happens when one metric rises while another falls, or vice versa. This inverse relationship can help forecast shifts in market momentum. Below are more detailed explanations based on recent charts and data. Divergence Between Bitcoin and Weekly RSI The first warning sign comes from the Relative Strength Index (RSI) on the weekly timeframe. Analysts are worried because this signal closely resembles the setup seen in 2021. Bitcoin Price and RSI Divergence. Source: Onur Barik According to analyst Onur Barik, Bitcoin’s current weekly chart structure resembles its 2021 peak in alarming ways. Specifically, while Bitcoin has formed a higher high, the RSI shows a lower high — a classic bearish divergence. Based on this setup, Barik predicts a possible downtrend for Bitcoin. “If this plays out like 2021, a clean trendline break followed by a bearish retest could trigger a full structure shift,” he forecasted. However, from a fundamental perspective, Ki Young Ju, CEO of CryptoQuant, recently shared a different view. He stated that “the Bitcoin cycle theory is dead,” suggesting that comparisons with previous cycles may no longer be relevant. Divergence Between DXY and Bitcoin A recent report from BeInCrypto noted that the US Dollar Index (DXY) hit a two-month high after the Fed decided to keep interest rates unchanged. Several analysts have also warned that the DXY may continue its upward trend in August, which could put downward pressure on Bitcoin. These warnings are becoming more credible as the chart reveals a renewed divergence between DXY and Bitcoin. DXY and BTC Price Movement. Source: TradingView To illustrate, as the DXY climbed from 96.7 to 98.9 points, Bitcoin dropped…
Filed under: News - @ August 4, 2025 9:23 pm