Bitcoin has declined by 4.77% this week, and with only hours remaining before the monthly and weekly candle closures, concerns are growing that the recent bullish momentum may be losing steam. While long-term fundamentals remain solid, short-term sentiment is turning cautious as multiple crypto analysts issue early warnings of a potential local top—and possibly, a Bitcoin price correction or crash.
This shift in market dynamics has traders and investors alike closely monitoring key technical levels and on-chain signals. Although panic is unwarranted, prudence is increasingly advised as bearish divergence patterns emerge across higher timeframes.
Bearish Divergence Signals Emerge
A growing number of analysts are pointing to technical warning signs suggesting that Bitcoin may have reached a temporary peak. The current chart setup has sparked debate across the crypto community, particularly with the May 2025 monthly candle nearing its close.
One prominent trader, OrderAndFlow, highlighted a potential bearish divergence forming on both the daily and weekly Bitcoin charts. While not yet confirmed, this pattern could signal weakening momentum despite price holding near recent highs.
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The trader drew parallels between the current market structure and conditions observed in September 2021—just two months before a major bear market began. “There’s nothing to panic about yet,” OrderAndFlow noted, “but caution is absolutely warranted.” The outcome of May’s candle close could prove pivotal in determining whether the bullish trend remains intact or begins to unravel.
Weekly Divergence Confirmed by On-Chain Expert Willy Woo
Adding weight to these concerns, on-chain analyst Willy Woo also identified a negative divergence on Bitcoin’s weekly chart. Though subtle, Woo emphasized that the signal carries significance due to declining volume participation at current price levels.
According to Woo, Bitcoin is now hovering just below a critical resistance zone near $100,000—a level that has acted as strong resistance in previous cycles. With thinning trade volume, any failure to break above this ceiling could lead to profit-taking and downward pressure.
This confluence of technical resistance and weakening momentum suggests that short-term upside may be limited unless buying intensity increases significantly in June.
Is Bitcoin Still on Track for a Supercycle?
Despite mounting short-term caution, the broader macro outlook for Bitcoin remains overwhelmingly positive. Many experts believe BTC is positioning itself for a historic Bitcoin supercycle in 2025, driven by cyclical trends, halving effects, and rising institutional adoption.
Historical patterns suggest that Bitcoin enters explosive growth phases approximately every four years—typically following a halving event. With the 2024 halving now in the rearview, the stage appears set for a multi-year rally culminating in 2025.
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Most long-term BTC price predictions now converge between $200,000 and $250,000 by 2025, assuming historical cycles repeat. These forecasts are supported by increasing treasury allocations from public companies and growing speculation around central bank interest in digital reserves.
Institutional Momentum Builds
Recent developments underscore growing institutional confidence in Bitcoin as a strategic asset. Data from Arkham Intelligence revealed that Trump Media entered into a $2.32 billion agreement to add Bitcoin as a primary treasury reserve—mirroring moves previously made by MicroStrategy.
Meanwhile, commentary from Michael Saylor—a longtime Bitcoin advocate—suggested even central financial institutions like the Bank of England might be nearing entry into the market. While speculative, such statements amplify belief in Bitcoin’s long-term value proposition and reinforce supercycle narratives.
Key Levels to Watch in June
As May concludes with a red monthly candle and weakening RSI momentum, all eyes are now on the June open. A strong start could reignite bullish sentiment, but any early weakness may confirm that a short-term correction is underway.
Traders should monitor the following key levels:
- Immediate support: $102,000
A break below this zone could accelerate selling pressure. - Critical support range: $96,000–$98,000
This area aligns with prior resistance-turned-support and strong historical accumulation zones. - Resistance ahead: $106,500 and $110,000
Clearing these levels would invalidate near-term bearish scenarios and re-energize upward momentum.
A failure to reclaim $106,500 soon after June begins could signal extended consolidation or downside correction—especially if volume continues to dwindle.
What Does This Mean for Investors?
The market is at an inflection point. Short-term indicators suggest vulnerability, but long-term fundamentals remain robust. For holders, volatility should be expected—not feared. For traders, precision in timing and risk management will be crucial over the coming weeks.
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Frequently Asked Questions (FAQ)
Q: What causes a bearish divergence in Bitcoin’s price chart?
A: Bearish divergence occurs when price makes higher highs, but momentum indicators like RSI or MACD fail to confirm—suggesting weakening buying pressure and potential reversal.
Q: Could Bitcoin still reach $200,000 in 2025 despite short-term weakness?
A: Yes. Short-term corrections are common within larger bull markets. As long as key support holds and institutional demand grows, the $200K–$250K range remains achievable by 2025.
Q: What is a "supercycle" in cryptocurrency markets?
A: A supercycle refers to an extended period of accelerated price growth driven by macroeconomic trends, scarcity events (like halvings), and widespread adoption—often lasting multiple years.
Q: How important is the monthly candle close for Bitcoin?
A: Very. Monthly closes shape long-term trend structure. A bearish close can shift trader psychology and trigger algorithmic responses that influence June’s price action.
Q: Should I sell Bitcoin if it drops below $102,000?
A: Not necessarily. That level is key support—if it holds, it may present a buying opportunity. However, a confirmed breakdown warrants caution and reassessment of entry points.
Q: Are institutions still buying Bitcoin despite price volatility?
A: Yes. Companies like MicroStrategy and emerging players like Trump Media continue accumulating BTC, viewing volatility as temporary and long-term value as undeniable.
Final Outlook: Caution Now, Confidence Later
While Bitcoin price crash fears are rising due to technical warnings and uncertain momentum around the May candle close, the overarching trend remains bullish. Short-term corrections do not negate long-term cycles.
The next 48 hours are critical. A weak close could spark early June selling—but also create strategic entry opportunities for those aligned with the 2025 supercycle thesis.
Stay informed, manage risk wisely, and keep sight of the bigger picture: Bitcoin’s journey is far from over.
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