Bitcoin (BTC) Price Shows Bullish Potential After Recent Correction – Here's the Outlook

Bitcoin (BTC) has achieved three new ATHs within the past week. However, analyst Crypto Patel has raised concerns about declining momentum.

Bitcoin (BTC) price has achieved three new all-time highs (ATHs) within the past week. However, analyst Crypto Patel has raised concerns about declining momentum.

The analyst points to a crucial pattern on BTC’s chart and bearish signs from the RSI indicator. He advises traders in his tweet to be cautious and refrain from making snap judgments.

His perception suggests a wait-and-see approach for a clear breakout.

Bitcoin ATH Warning: RSI Says “Be Careful

Recent Action: #Bitcoin has hit a new ATH 3 times in the last 7 days. However, the RSI is dropping, signaling caution.

Risk Alert:

A triangle pattern is forming on the LTF.

Wait for a clear breakout before making any moves.

Key levels… pic.twitter.com/IQb0L4cDYM

This BTC Formation Indicates Consolidation

Patel’s Bitcoin chart reveals a symmetrical triangle pattern. It consists of higher lows and lower highs. This pattern often signifies consolidation before a breakout, but the direction remains uncertain.

Resistance at $93.4k has emerged as a key hurdle, with Bitcoin testing this level multiple times without a breakthrough. A successful breakout above this point could push the price toward $100,000, aligning with bullish predictions.

Conversely, support at $90,600 is critical. If breached, it may lead to a sharp decline toward $75,000, a level highlighted as a major support zone by the analyst.

RSI Signals Bearish Divergence

The RSI, a key momentum indicator, suggests weakening bullish pressure. While Bitcoin’s price has climbed to record highs, the RSI has displayed lower peaks, forming a bearish divergence. This divergence often signals potential exhaustion in an uptrend.

Crypto Patel noted that a breakdown in RSI below its trendline could trigger bearish price action. Additionally, RSI levels nearing overbought territory align with recent ATHs, signaling reduced buying interest despite rising prices.

Bitcoin Key Levels to Monitor

Two critical levels dominate the current Bitcoin chart analysis. On the upside, $93,400 remains a pivotal resistance. A breakout here could fuel a rally to $100,000. On the downside, $90,600 is an immediate support level. A failure to hold this level may lead to a drop toward $75,000, which represents a prior consolidation zone.

The tweet underscores the importance of waiting for a clear breakout from the triangle before making trading decisions. The RSI divergence further reinforces a cautious stance. At press time, BTC trades at $92,338.88.

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