Bitcoin's Bearish Divergence Warning Ignored by Traders
A recent technical analysis of Bitcoin's price action on the weekly chart revealed a bearish divergence that preceded a sharp decline in June 2026. The RSI (Relative Strength Index) made a higher high near $80,000 while the price also reached a new high, indicating weakening upward momentum. This mismatch often goes unnoticed by traders who expect an immediate reversal but fail to materialize.
According to BitcoinHypers, in strong trends, the RSI often stays in overbought territory above 70 for extended periods, tricking buyers into believing the trend has broken. However, this can be a trap, as seen during the June 2026 period when Bitcoin saw losses of nearly 19%.
Regular bearish divergence occurs when the price reaches a higher high but the RSI makes a lower high, signaling weakening bullish momentum. Hidden bullish divergence occurs during a correction when the price makes a higher low while the RSI makes a lower low.