Bitcoin Analyst Warns of Potential $70,000 Retrace Following Resistance Test

A chart analyst has sounded an alarm for Bitcoin, warning of a potential deeper pullback ahead. After reaching first resistance at $87,000, Bitcoin's price action is displaying bearish RSI divergence on higher timeframes. Meanwhile, lower timeframes suggest that one more push higher may still be needed before the top forms.

The analyst is closely watching a backtest near $83,500 as a critical level of support. If Bitcoin holds this zone, another push toward $89,000 resistance could follow, but this move is expected to print bearish and potentially mark the top of the current rally phase.

Should that top get confirmed, the minimum retrace target drops to around $70,000, with a new low considered 'still valid and likely.'