Bitcoin’s recent price activity is prompting some market watchers to issue warnings of a potential trend reversal. With the cryptocurrency hovering around the $105,000 mark, concerns are growing that Bitcoin may have already topped out. Despite a minor 0.02% gain in the last 24 hours, Bitcoin has slipped over 4% this week, reflecting a broader struggle to maintain upward momentum. This comes as technical indicators signal weakening buying pressure, and traders prepare for the possibility of a correction.

One of the more significant warning signs comes from the Relative Strength Index (RSI), a momentum indicator often used to evaluate overbought or oversold conditions. The RSI recently peaked near 80 before gradually declining to the current level around 61. This decline is considered a bearish divergence, especially since it has occurred while Bitcoin’s price has held relatively steady. Analysts interpret this divergence as a potential sign that the recent rally is losing steam and that the asset may be entering a consolidation or correction phase.

According to popular crypto analyst Captain Faibik, the market is currently “selling the top” following the recent rally. He points to multiple signs of exhaustion, including the RSI divergence and Bitcoin’s repeated failure to break through key resistance levels around $109,000 and $111,000. These resistance levels, first established in May, have since acted as a ceiling for price action. Bitcoin’s inability to push higher through these zones could indicate that bullish momentum is fading.

A major ascending trendline formed from the December 2024 low has also served as a dynamic resistance, keeping price movements in check. Faibik believes that unless Bitcoin manages to decisively break above this trendline and resistance zone, the likelihood of a downward move increases. He estimates that a correction could push Bitcoin down to the $92,000–$94,000 range in the near term.

This pattern of rising prices accompanied by a falling RSI isn’t entirely new. A similar dynamic occurred in 2022, when Bitcoin was recovering from its bottom near $16,000. During that period, while the price consolidated, RSI trended upward from oversold levels, eventually contributing to a longer-term rally. However, the context was different — in 2022, momentum was building from a low base, while in the current cycle, Bitcoin appears to be coming down from a high.

Adding to the caution is data from Bitcoin’s derivatives market. Recent metrics show a 1.62% uptick in derivatives trading volume, now sitting just above $100 billion. While this suggests that activity is picking up, it’s not necessarily a bullish sign. In fact, open interest has declined by 1.37% to around $69.7 billion, indicating that traders are closing out positions — potentially locking in profits or exiting the market due to uncertainty.

Another revealing statistic is the liquidation data. Over the past 24 hours, approximately $72 million in leveraged positions were liquidated, with the majority being long trades. This signals that a significant number of bullish traders were caught off-guard by Bitcoin’s recent dip. It’s often the case that liquidation cascades can accelerate price declines, especially when long positions are heavily concentrated near resistance levels.

In light of all this, the sentiment among technical analysts is leaning more cautious than optimistic. While long-term believers in Bitcoin remain unfazed by short-term fluctuations, traders who focus on timing entries and exits are growing wary. Until Bitcoin can reclaim and hold above key resistance zones with renewed momentum, the risk of a deeper pullback remains elevated.

Overall, while Bitcoin’s long-term fundamentals remain strong — supported by institutional interest, increasing adoption, and macroeconomic instability — the technical picture suggests a potential pause in the uptrend. Traders may be wise to watch for signs of further weakness and consider managing risk accordingly.

Whether this is merely a healthy consolidation or the beginning of a broader correction, the coming days will be critical in determining Bitcoin’s next major move. For now, the market seems to be testing the patience of both bulls and bears.