Bitcoin\u2019s recent upwards momentum has led to a massive shift in the overall sentiment surrounding the crypto markets, as enthusiasm is tepidly increasing as more investors believe that the BTC\u2019s 2018 lows are truly a long-term bottom.<\/p>\n
Despite this, one of Bitcoin\u2019s fundamental indicators is currently flashing a bearish signal that has historically been followed by large retraces, which could put BTC\u2019s recent price surge in jeopardy.<\/p>\n
At the time of writing, Bitcoin<\/a> is trading up nearly 1% at its current price of $5,310, up slightly from its daily lows of $5,260.<\/p>\n Earlier this week, BTC fell from highs of well over $5,600 due to news surrounding the New York Attorney General\u2019s office claiming that controversial stablecoin Tether and related cryptocurrency exchange Bitfinex, have been defrauding investors and traders.<\/p>\n This news instantly sent Bitcoin and the entire crypto market reeling downwards, but BTC found a decent amount of support in the $5,200 region that stopped it from falling lower and has allowed it to begin climbing higher.<\/p>\n This recent drop initially appeared to put the upwards momentum that Bitcoin formed when it surged into the $5,000 region earlier this month at risk, but clearly investors were not too fazed by the news, as the scope of its impact was limited.<\/p>\n Moon Overlord, a popular cryptocurrency analyst on Twitter, spoke about the lack of impact the Bitfinex and Tether imbroglio had on the markets in a recent tweet, saying:<\/p>\n \u201cFor all the commotion and reactions from the $crypto community about the Bitfinex \/ Tether news it’s barely noticeable on the $BTC chart.\u201d<\/p><\/blockquote>\n https:\/\/twitter.com\/MoonOverlord\/status\/78003456<\/p>\n Although the market\u2019s muted reaction to the Tether news may signal both fundamental strength<\/a> and growing maturity, Bitcoin’s RSI may be flashing a bearish signal that has historically been followed by large retraces.<\/p>\n HornHairs, another popular crypto analyst on Twitter, spoke about this bearish signal in a recent tweet, explaining that over the past five years, bearish RSI divergences on a two-day chart have nearly always been followed by a large dip.<\/p>\n \u201c$BTC #Bitcoin 2D RSI Bear Div Study: In the past 5+ years, there have been only 5 accounts of a bearish RSI divergence on the 2D chart. Today will mark the 6th. The average drawdown AFTER the confirmation of those previous divs before a significant bounce\/reversal was -44.25%,\u201d he explained in a recent tweet.<\/p><\/blockquote>\n $BTC<\/a> #Bitcoin<\/a> 2D RSI Bear Div Study:<\/p>\n In the past 5+ years, there have been only 5 accounts of a bearish RSI divergence on the 2D chart<\/p>\n Today will mark the 6th<\/p>\n The average drawdown AFTER the confirmation of those previous divs before a significant bounce\/reversal was -44.25% pic.twitter.com\/zXsddqrWyu<\/a><\/p>\n — HornHairs \ud83c\udf0a (@CryptoHornHairs) April 26, 2019<\/a><\/p><\/blockquote>\nBTC\u2019s RSI May Signal That a Retrace is Imminent<\/strong><\/h2>\n
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