FameEX Hot Topics | New Bitcoin Highs in Sight, But Technical Divergences Cap Outlook at $110K

Bitcoin surged to $110,500 on Thursday, coming close to its all-time high of $111,800. However, despite the impressive rally, technical signals are flashing warnings. Analysts have noted bearish divergences appearing across various timeframes, including the 15-minute, one-hour, and four-hour charts. These divergences occur when the price continues to climb, but momentum indicators such as the Relative Strength Index (RSI) trend lower. This pattern suggests that the upward momentum is weakening, potentially setting the stage for a short-term pullback.

A zoomed-out look at the one-day chart reinforces this caution. Since May, a persistent bearish divergence has been present, aligning with Bitcoin’s previous peak. Although BTC dipped below $100,000 and later recovered, the divergence has not resolved. This continued disconnect between price and momentum suggests that bearish pressure is still influencing market behavior. Should the rally lose steam, downside support levels are seen around $107,500 to $106,000 — zones that have historically offered a cushion for price.

Further concern was added by Friday’s U.S. Non-Farm Payroll (NFP) report, which beat expectations and initially drove Bitcoin higher. However, after briefly testing the $110,000 mark again, bulls failed to sustain the move. The rejection at this critical psychological level could reflect market fatigue, especially near historically significant highs. It also highlights traders’ hesitation to push BTC decisively into new price territory without a strong catalyst.

Interestingly, perpetual futures funding rates have remained neutral. Vetle Lunde of K33 Research pointed out that despite Bitcoin’s proximity to its record highs, funding remains flat. This indicates that traders are not aggressively opening long positions, reflecting broader uncertainty in the market. This subdued sentiment mirrors the divergence signals and further suggests that participants are cautious rather than euphoric.

As Bitcoin consolidates below the $110,000 mark, opinions remain mixed. Trader Byzantine General sees potential for a breakout toward $112,000 based on futures open interest. Yet others, like KillaXBT, observe rising sell pressure and recurring fakeouts — swift price moves above or below key levels, followed by sharp reversals. These maneuvers often serve to flush out leveraged traders before a meaningful trend emerges, adding to the current market tension.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.