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Flashing Red Divergence Signal: Is Bitcoin Heading for a Reversal in June?
Although experts and organizations continue to make optimistic predictions about Bitcoin prices in the short term and long term, some point out divergence signals that may indicate an upcoming reversal. Divergence signals occur when the price creates higher highs, but the indicators or correlating data weaken. This reflects a downward momentum. Currently, Bitcoin is facing some of these divergence signals. Divergence Signal Warns About the Potential Adjustment of Bitcoin The first warning comes from the technical signal in the monthly time frame. Investors often overlook larger time frames such as monthly charts to prioritize daily price movements. Therefore, this signal may catch many investors off guard. A recent report from 10xResearch warns that Bitcoin has reached a resistance level and is forming a pattern similar to that of 2021. The chart shows that in 2021, Bitcoin formed two peaks, with the second peak higher than the first. A similar price pattern now appears to be repeating in 2025.
In addition, analyst Matthew Hyland pointed out the bearish divergence in the RSI on the weekly timeframe. Analyst Mitch Ray also noted that Bitcoin has confirmed the bearish divergence with the MACD-H indicator on the daily chart. These multiple divergence signals indicate that Bitcoin may be losing upward momentum. This loss of momentum could lead to a significant correction in the upcoming month. In addition to the technical signals, analyst James Van Straten also emphasized another divergence, this time between the stock price of MicroStrategy (MSTR) and Bitcoin.
The chart shows that in November 2021, MSTR fell about 50% from its previous high, while Bitcoin reached a new all-time high of $69,000. A similar scenario is happening right now. MSTR has completed a 50% drop from its peak by the end of 2024, but Bitcoin continues to reach new highs above $111,000.
Although James did not draw a definite conclusion, this signal once again indicates the possibility that Bitcoin will correct — or even reverse, as seen in the 2021–2022 cycle. "Bitcoin has just announced another strong month, but beneath the surface, cracks are forming. The increasing divergence between price action, volatility, and retail behavior suggests that the cycle may be changing. Major players like MicroStrategy are slowing down their purchasing process, and key altcoins are sliding below important support levels. Volume is gradually decreasing, momentum is being disrupted, and technical signs eerily resemble what we saw in 2021, just before everything changed," 10xResearch reported. Despite these warning signals, BeInCrypto reported on the wave of Bitcoin accumulation by companies outside the cryptocurrency sector, ranging from gaming to healthcare and retail. Bitwise also predicts that institutional capital flows could reach $426.9 billion by 2026, accounting for 20% of the total Bitcoin supply. These new dynamics could make a significant difference between the market in 2025 and that of 2021. They could make direct comparisons between the two periods misleading.