Although experts and institutions continue to give optimistic forecasts for Bitcoin’s price in the short and long term, some point to divergence signals that may indicate an upcoming reversal.
A divergence signal occurs when the price creates a higher high, but the indicators or correlated data weaken. This reflects declining momentum. Currently, Bitcoin is facing several of these divergence signals.
Divergence Signals Warn of a Potential Bitcoin Correction
The first warning comes from a technical signal in the monthly timeframe.
Investors often overlook larger timeframes like the monthly chart in favor of daily price movements. As a result, this signal might catch many investors by surprise.
A recent report from 10xResearch warns that Bitcoin has reached resistance and is forming a pattern similar to 2021. The chart shows that in 2021, Bitcoin formed two peaks, with the second being higher than the first. The same price pattern now seems to be repeating in 2025.
Bitcoin Resistance in 2021 and 2025. Source: 10xResearch.
In addition, analyst Matthew Hyland has pointed out a bearish divergence in the RSI on the weekly timeframe. Analyst Mitch Ray also noted that Bitcoin has confirmed a bearish divergence with the MACD-H indicator on the daily chart.
These multiple divergence signals suggest that Bitcoin may be losing upward momentum. This loss of momentum could lead to a significant correction in the coming month.
Besides technical signals, analyst James Van Straten highlighted another divergence—this time between the stock price of MicroStrategy (MSTR) and Bitcoin.
Bitcoin Price and MicroStrategy (MSTR) Stock Price 2021 – 2022. Source: James Van Straten
The chart shows that in November 2021, MSTR dropped about 50% from its previous high, while Bitcoin reached a new all-time high of $69,000. A similar scenario is unfolding now. MSTR has completed a 50% drop from its late-2024 peak, yet Bitcoin continues to hit new highs above $111,000.
Although James didn’t offer a definitive conclusion, this signal again suggests a potential Bitcoin correction—or even a reversal, as seen in the 2021–2022 cycle.
“Bitcoin just posted another strong month, but beneath the surface, cracks are forming. A growing divergence between price action, volatility, and retail behavior suggests the cycle may be shifting. Major players, such as MicroStrategy, are slowing their purchases, and key altcoins are slipping below critical support levels. Volumes are fading, momentum is fracturing, and the technical signs are eerily similar to what we saw in 2021, just before things turned,” 10xResearch reported.
Despite these warning signals, BeInCrypto has reported a wave of Bitcoin accumulation by companies outside the crypto sector, from gaming to healthcare and retail. Bitwise also projects that institutional capital inflows could reach $426.9 billion by 2026, locking up 20% of Bitcoin’s total supply.
These new forces may represent a key difference between the 2025 market and that of 2021. They could make direct comparisons between the two periods misleading.
