Bitcoin (BTC/USDT) Analysis – Divergence and Bearish Setup
2025-02-09
Category: None

hello guys!

 Divergence Between Price and RSI:
 The chart shows a clear bearish divergence between price action and the Relative Strength Index (RSI).
Price made higher highs, while the RSI formed lower highs, signaling weakening bullish momentum and the potential for a reversal.

Price Action Analysis:
The price reached the QML2 zone (~$103,000), and there is a clear rejection, suggesting selling pressure.
The price is now heading toward QML1, located at around $95,600.
If the price breaks QML1 and holds below, the next support target is around $93,455, where further downside could be expected.

Support and Target Zones:
Support Area 1: QML1 (~$95,600) – key level to monitor for possible breakdown.
Support Area 2: QML2 (~$93,455) – potential next stop if QML1 breaks.
Resistance Zone: Around $103,000 – the price has been rejected from here, acting as a strong resistance level.

RSI Analysis:
The RSI is showing signs of bearish divergence, which often precedes a price correction or reversal.
RSI Below 50: If the RSI drops below the 50 mark, it could indicate increasing bearish momentum.

Trade Setup:
Bearish Setup:
Entry: Short position below $95,600 (if price breaks QML1 and retests it as resistance).
Take Profit: First target at $93,455, then possibly lower towards $91,000.

 Conclusion:
Bearish Bias: The combination of price rejection at the upper resistance level and RSI divergence points to a potential price decline.
Key Levels to Watch: The immediate breakdown below $95,600 and subsequent test of $93,455 will be critical for further downside.