#HighlightPosts# Bitcoin Divergence Signals Are Increasing: Is a Correction Coming in June?
While experts and institutions continue to make optimistic predictions for Bitcoin’s short-term and long-term price, some analysts are drawing attention to divergence signals that could signal an impending turn in the market.
A divergence signal occurs when the price forms a higher peak but indicators or related data weaken. This reflects decreasing momentum. Bitcoin is currently facing many such divergence signals.
Divergence Signals Point to Possible Bitcoin Correction
The first warning comes from a technical signal on the monthly timeframe. Traders often ignore larger timeframes, such as the monthly chart, in favor of daily price action. As a result, this signal may surprise many investors.
The data warns that Bitcoin has reached resistance and is forming a pattern similar to 2021. The chart shows that Bitcoin formed two peaks in 2021, with the second one being higher than the first. The same price pattern now appears to be repeating in 2025.
Additionally, analyst Matthew Hyland noted a bearish divergence in the RSI on the weekly timeframe. Analyst Mitch Ray also noted that Bitcoin’s bearish divergence was confirmed by the MACD-H indicator on the daily chart.
These multiple divergence signals suggest that Bitcoin may be losing its upward momentum. This loss of momentum could lead to a significant correction in the coming month.
Aside from the technical signals, analyst James Van Straten highlighted another divergence, this time between the MicroStrategy stock price and Bitcoin.
The chart shows that in November 2021, MSTR fell nearly 50% from its previous peak, while Bitcoin reached a new all-time high of $69,000. A similar scenario is currently playing out. MSTR completed a 50% drop from its late-2024 peak, but Bitcoin continues to reach new highs above $111,000.
While James did not offer a definitive conclusion, this signal points to a potential Bitcoin correction or even a reversal, as seen in the 2021–2022 cycle.
‘Bitcoin has just had another strong month, but cracks are forming beneath the surface. The increasing divergence between price action, volatility, and individual behavior suggests the cycle may be changing. Major players like MicroStrategy are slowing their buying, and key altcoins are falling below critical support levels. Volumes are declining, momentum is breaking, and technical cues are eerily similar to what we saw in 2021, just when things were about to turn around.
Despite these warning signals, companies outside the crypto space have reported a wave of Bitcoin accumulation, ranging from gaming to healthcare and retail. It predicts that institutional capital inflows could reach $426.9 billion by 2026, locking up 20% of Bitcoin’s total supply.
These new forces could represent a significant difference between the 2025 market and the 2021 market. Direct comparisons between the two periods can be misleading.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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ElizabethAldi
· 06-01 12:26
Buy To Earn 💎
Reply0
Sakura_3434
· 05-31 20:35
HODL Tight 💪
Reply0
TonmoyBD
· 05-31 11:12
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Reply0
CryptoAnTT9
· 05-31 03:26
HODL Tight 💪
Reply0
Ryakpanda
· 05-31 00:25
Just go for it 💪
Reply0
GateUser-87adec4b
· 05-30 19:58
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Reply0
YouYaYuanZhouXiaoLo
· 05-30 19:30
Steadfast HODL💎
Reply0
Szero
· 05-30 19:25
HODL Tight 💪
Reply0
Surrealist5N1K
· 05-30 19:19
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#HighlightPosts# Bitcoin Divergence Signals Are Increasing: Is a Correction Coming in June?
While experts and institutions continue to make optimistic predictions for Bitcoin’s short-term and long-term price, some analysts are drawing attention to divergence signals that could signal an impending turn in the market.
A divergence signal occurs when the price forms a higher peak but indicators or related data weaken. This reflects decreasing momentum. Bitcoin is currently facing many such divergence signals.
Divergence Signals Point to Possible Bitcoin Correction
The first warning comes from a technical signal on the monthly timeframe. Traders often ignore larger timeframes, such as the monthly chart, in favor of daily price action. As a result, this signal may surprise many investors.
The data warns that Bitcoin has reached resistance and is forming a pattern similar to 2021. The chart shows that Bitcoin formed two peaks in 2021, with the second one being higher than the first. The same price pattern now appears to be repeating in 2025.
Additionally, analyst Matthew Hyland noted a bearish divergence in the RSI on the weekly timeframe. Analyst Mitch Ray also noted that Bitcoin’s bearish divergence was confirmed by the MACD-H indicator on the daily chart.
These multiple divergence signals suggest that Bitcoin may be losing its upward momentum. This loss of momentum could lead to a significant correction in the coming month.
Aside from the technical signals, analyst James Van Straten highlighted another divergence, this time between the MicroStrategy stock price and Bitcoin.
The chart shows that in November 2021, MSTR fell nearly 50% from its previous peak, while Bitcoin reached a new all-time high of $69,000. A similar scenario is currently playing out. MSTR completed a 50% drop from its late-2024 peak, but Bitcoin continues to reach new highs above $111,000.
While James did not offer a definitive conclusion, this signal points to a potential Bitcoin correction or even a reversal, as seen in the 2021–2022 cycle.
‘Bitcoin has just had another strong month, but cracks are forming beneath the surface. The increasing divergence between price action, volatility, and individual behavior suggests the cycle may be changing. Major players like MicroStrategy are slowing their buying, and key altcoins are falling below critical support levels. Volumes are declining, momentum is breaking, and technical cues are eerily similar to what we saw in 2021, just when things were about to turn around.
Despite these warning signals, companies outside the crypto space have reported a wave of Bitcoin accumulation, ranging from gaming to healthcare and retail. It predicts that institutional capital inflows could reach $426.9 billion by 2026, locking up 20% of Bitcoin’s total supply.
These new forces could represent a significant difference between the 2025 market and the 2021 market. Direct comparisons between the two periods can be misleading.