The post Bitcoin Price Echoes 2021 Warning as RSI Divergence Flashes Red appeared on BitcoinEthereumNews.com.

TL;DR Bitcoin forms weekly RSI divergence while the price makes higher highs, echoing the 2021 cycle top pattern. BTC trades below the $112K support; analysts warn of a broader correction if this level fails. Illiquid supply surges on Binance; whales holding tight may drive prices up or cause sharp drops. Bitcoin Forms Bearish Divergence Similar to 2021 Bitcoin is showing a weekly chart pattern that resembles what appeared just before the 2021 cycle top. The current structure includes higher highs in price while the Relative Strength Index (RSI) forms lower highs. This divergence often appears when momentum slows down during a rally. Crypto analyst Ali Martinez pointed out this signal. He explained that the same setup appeared ahead of the 2021 peak, where Bitcoin topped out and then began a longer downward phase. Now, as BTC recently traded close to $120,000, the RSI has not kept pace. This gap between price and strength indicators suggests reduced buying pressure at higher levels. Bitcoin $BTC is making higher highs while RSI makes lower lows. This is the same divergence seen before the 2021 cycle top! pic.twitter.com/tR0IT25AVf — Ali (@ali_charts) August 29, 2025 Price Struggles Around Key Support Zone Bitcoin was trading at around $110,100 at press time, showing a slight drop of 2% over the last 24 hours and 2% since last Friday. The $112,000 area is now viewed as a key support zone. Some analysts believe that holding this level could decide the short-term direction. Michaël van de Poppe shared a chart showing that if Bitcoin breaks below $112,000, a deeper pullback could follow. He posted, “If #Bitcoin can’t hold above $112K, we’ll probably face a very ugly correction across the board.” The price has already dropped from its recent peak near $124,500 and has moved through several previous support levels,…

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Filed under: News - @ August 29, 2025 8:29 am