Divergence Signals Suggest Bitcoin May Reverse in June
The post Divergence Signals Suggest Bitcoin May Reverse in June appeared on BitcoinEthereumNews.com.
Although experts and institutions continue to give optimistic forecasts for Bitcoin’s price in the short and long term, some point to divergence signals that may indicate an upcoming reversal. A divergence signal occurs when the price creates a higher high, but the indicators or correlated data weaken. This reflects declining momentum. Currently, Bitcoin is facing several of these divergence signals. Divergence Signals Warn of a Potential Bitcoin Correction The first warning comes from a technical signal in the monthly timeframe. Investors often overlook larger timeframes like the monthly chart in favor of daily price movements. As a result, this signal might catch many investors by surprise. A recent report from 10xResearch warns that Bitcoin has reached resistance and is forming a pattern similar to 2021. The chart shows that in 2021, Bitcoin formed two peaks, with the second being higher than the first. The same price pattern now seems to be repeating in 2025. Bitcoin Resistance in 2021 and 2025. Source: 10xResearch. In addition, analyst Matthew Hyland has pointed out a bearish divergence in the RSI on the weekly timeframe. Analyst Mitch Ray also noted that Bitcoin has confirmed a bearish divergence with the MACD-H indicator on the daily chart. These multiple divergence signals suggest that Bitcoin may be losing upward momentum. This loss of momentum could lead to a significant correction in the coming month. Besides technical signals, analyst James Van Straten highlighted another divergence—this time between the stock price of MicroStrategy (MSTR) and Bitcoin. Bitcoin Price and MicroStrategy (MSTR) Stock Price 2021 – 2022. Source: James Van Straten The chart shows that in November 2021, MSTR dropped about 50% from its previous high, while Bitcoin reached a new all-time high of $69,000. A similar scenario is unfolding now. MSTR has completed a 50% drop from its late-2024 peak,…
Filed under: News - @ May 30, 2025 8:26 am