FameEX Hot Topics | Bitcoin Eyes New Highs, but Divergences Signal $110K Resistance

Bitcoin surged to $110,500 on Thursday, approaching its all-time high, but signs of weakness are surfacing beneath the surface. Despite the price rally, technical analysts are sounding alarms over bearish divergences spotted across multiple timeframes. On the 15-minute, one-hour, and four-hour charts, momentum indicators like the Relative Strength Index (RSI) are trending downward even as price moves upward — a classic divergence that often precedes a pullback. This discrepancy suggests that bullish momentum may be losing strength, increasing the likelihood of a near-term correction.

Looking at the broader picture, the one-day chart offers additional caution. A notable bearish divergence began forming in May, coinciding with Bitcoin’s record high of $111,800. Since then, BTC briefly fell below the $100,000 mark before rebounding, yet the divergence persists. This ongoing trend indicates that bearish pressure has not fully dissipated. If the current rally stalls, key downside targets lie around $107,500 to $106,000 — levels that previously acted as support.

The cautious tone was amplified following the release of Friday’s U.S. Non-Farm Payroll (NFP) report, which exceeded expectations. Initially, strong labor data propelled BTC higher, helping it test the $110,000 threshold. However, bulls failed to sustain momentum, and the price was quickly rejected at that key psychological level. This failed breakout could reflect market exhaustion near recent highs and a reluctance to push decisively into new territory.

Interestingly, despite this price action, funding rates for perpetual futures remain flat. According to K33 Research’s Vetle Lunde, this neutrality implies a lack of aggressive long positioning — a sign that traders are cautious, not fully buying into the breakout narrative. The lack of commitment aligns well with the divergence signals, highlighting a market still searching for conviction.

Traders remain divided on Bitcoin’s next move. While pseudonymous trader Byzantine General suggested a potential breakout to $112,000 based on futures open interest trends, others are seeing warning signs. Sell pressure has intensified around $110,000, with taker sell volumes rising — a sign of possible profit-taking at resistance. Additionally, trader KillaXBT noted repeated liquidity sweeps above and below key levels, only to see price reverse. These fakeouts are often tactics to flush out leveraged positions before a more sustained move occurs.

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