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Key Notes Bitcoin fails to hold $113K, flashing a bearish divergence similar to 2021. Long-term holders are distributing while short-term traders fuel BTC demand. Whales remain cautious, leaving ETH as the preferred rotation play. Bitcoin BTC $110 033 24h volatility: 2.7% Market cap: $2.19 T Vol. 24h: $37.39 B has once again failed to hold above the critical $113,000 mark, slipping back to $111,139 at press time, a 1.6% decline over the past 24 hours. The move has led to speculations of the leading digital asset reaching its cycle top, with signs of capital rotation into Ethereum ETH $4 363 24h volatility: 5.3% Market cap: $527.03 B Vol. 24h: $29.35 B becoming increasingly evident. Divergence Signals Echo the 2021 Cycle Top Ali Martinez highlighted a worrying technical signal on Bitcoin’s weekly chart, i.e., a bearish divergence between price and Relative Strength Index (RSI). While Bitcoin continues to print higher highs, RSI has trended lower, a classic sign that momentum is weakening even as price climbs. 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 Martinez noted that this setup mirrors the divergence seen just before the 2021 market top, where Bitcoin peaked around $69,000 before entering a prolonged bear cycle, also known as the crypto winter. Short-Term Optimism, Long-Term Caution Swissblock’s Altcoin Vector shared a breakdown of Bitcoin’s net position change across different market participants: Long-Term Holders (LTHs) are distributing. Short-Term Holders (STHs) are accumulating aggressively. Whales remain indecisive, not committing significant inflows to Bitcoin just yet. Exchanges show mild outflows, though not enough to signal large-scale distribution. It’s no secret that profit-taking is happening in $BTC, with much of that capital rotating into $ETH.https://t.co/UeAvwWOydf — Bitcoin Vector (@bitcoinvector) August…

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Filed under: News - @ August 29, 2025 8:30 am