Bitcoin's Treacherous Breakout: Analysts Warn of Downtrend Resumption

Bitcoin's price has surged by 22% in the past week, nearing another breakout point. This latest rally looks more treacherous than the previous one on August 19, which was fueled by trapped bears.

The current setup is a reverse scenario, with crowded longs and supply stacked overhead. The Relative Strength Index (RSI) has made a higher high, but the price has carved a lower high on the 12-hour chart, creating a hidden bearish divergence.

This mismatch does not signal a top, but rather warns of a possible resumption of the downtrend. The volume has thinned since Bitcoin cleared $70,000 on August 19, and the RSI has slipped below its signal line while remaining in the overbought zone.

Bitcoin's price is still down by 9.8% this year, having opened at around $87,650. Despite this decline, momentum shows the crowd's energy, not who's paying for it.