Bitcoin Faces Potential Short-Term Dip Below $115,000 as Hidden Bearish Divergence Emerges

Cryptocurrency analyst "The Wolf Of All Streets" has issued a cautionary technical signal for Bitcoin ($BTC), indicating a potential shift in market sentiment. Analyzing the 12-hour chart, the analyst reported the cancellation of previous bullish divergences and the emergence of a "hidden bearish divergence." This development suggests that a recent price recovery, described as a "nice bounce," may be nearing its end, prompting a call for greater market clarity.

A hidden bearish divergence is a technical pattern where an asset's price records a lower high, yet a momentum oscillator, such as the Relative Strength Index (RSI), forms a higher high. This divergence is often interpreted by analysts as a signal of weakening bullish conviction and a potential continuation of a prevailing downtrend. It suggests that despite temporary price strength, the underlying buying pressure is diminishing, making the asset vulnerable to further declines.

This technical warning emerges during a period of notable price fluctuations for Bitcoin, which has recently traded around the $108,000 to $112,000 mark. Compounding the bearish signal, a recent analysis from Bitget highlighted an unfilled CME (Chicago Mercantile Exchange) gap near $115,000. Historically, these gaps frequently act as "price magnets," indicating a strong likelihood that Bitcoin's price will retrace to fill this specific range, aligning with the observed bearish divergence.

The emergence of this pattern carries weight given past market behavior; a similar hidden bearish divergence preceded a significant 20% price drop for Bitcoin in March 2024. While the broader market maintains varying long-term price targets, with some analysts forecasting Bitcoin could reach $150,000 or more by late 2025, the immediate technical indicators suggest a period of heightened caution. Investors and traders are now closely monitoring for further price action to gain "more clarity" on Bitcoin's short-term trajectory.