Bitcoin Price Echoes 2021 Warning as RSI Divergence Flashes Red

TL;DR Bitcoin forms weekly RSI divergence while the price makes higher highs, echoing the 2021 cycle top ￰0￱ trades below the $112K support; analysts warn of a broader correction if this level ￰1￱ supply surges on Binance; whales holding tight may drive prices up or cause sharp ￰2￱ Forms Bearish Divergence Similar to 2021 Bitcoin is showing a weekly chart pattern that resembles what appeared just before the 2021 cycle ￰3￱ current structure includes higher highs in price while the Relative Strength Index (RSI) forms lower ￰4￱ divergence often appears when momentum slows down during a ￰5￱ analyst Ali Martinez pointed out this ￰6￱ explained that the same setup appeared ahead of the 2021 peak, where Bitcoin topped out and then began a longer downward phase.

Now, as BTC recently traded close to $120,000, the RSI has not kept ￰7￱ gap between price and strength indicators suggests reduced buying pressure at higher ￰8￱ $BTC is making higher highs while RSI makes lower ￰9￱ is the same divergence seen before the 2021 cycle top! ￰10￱ — Ali (@ali_charts) August 29, 2025 Price Struggles Around Key Support Zone Bitcoin was trading at around $110,100 at press time, showing a slight drop of 2% over the last 24 hours and 2% since last ￰11￱ $112,000 area is now viewed as a key support ￰12￱ analysts believe that holding this level could decide the short-term direction. Michaël van de Poppe shared a chart showing that if Bitcoin breaks below $112,000, a deeper pullback could ￰13￱ posted , “If #Bitcoin can’t hold above $112K, we’ll probably face a very ugly correction across the board.” The price has already dropped from its recent peak near $124,500 and has moved through several previous support levels, which may now act as resistance.