In early August 2025, the crypto analyst group raises issues about potential divergence alerts on the Bitcoin (BTC) chart. These alerts may mirror the sharp downtrend that occurred in 2021.
Divergence occurs when one metric rises whereas one other falls, or vice versa. This inverse relationship can assist forecast shifts in market momentum. Beneath are extra detailed explanations primarily based on current charts and knowledge.
Divergence Between Bitcoin and Weekly RSI
The primary warning signal comes from the Relative Energy Index (RSI) on the weekly timeframe. Analysts are frightened as a result of this sign intently resembles the setup seen in 2021.
In response to analyst Onur Barik, Bitcoin’s present weekly chart construction resembles its 2021 peak in alarming methods. Particularly, whereas Bitcoin has fashioned the next excessive, the RSI reveals a decrease excessive — a basic bearish divergence.
Primarily based on this setup, Barik predicts a potential downtrend for Bitcoin.
“If this performs out like 2021, a clear trendline break adopted by a bearish retest may set off a full construction shift,” he forecasted.
Nonetheless, from a elementary perspective, Ki Younger Ju, CEO of CryptoQuant, lately shared a distinct view. He acknowledged that “the Bitcoin cycle concept is useless,” suggesting that comparisons with earlier cycles could not be related.
Divergence Between DXY and Bitcoin
A current report from BeInCrypto famous that the US Greenback Index (DXY) hit a two-month excessive after the Fed determined to maintain rates of interest unchanged. A number of analysts have additionally warned that the DXY could proceed its upward development in August, which may put downward stress on Bitcoin.
These warnings have gotten extra credible because the chart reveals a renewed divergence between DXY and Bitcoin.
As an instance, because the DXY climbed from 96.7 to 98.9 factors, Bitcoin dropped from $120,000 to $114,000. Analyst John Kicklighter believes the DXY is forming an inverse head-and-shoulders sample — a basic sign indicating a possible rally.
If this inverse correlation continues via August, Bitcoin may face additional draw back.
Divergence Between USDT Dominance and Bitcoin
USDT Dominance (USDT.D) displays the proportion of USDT’s market cap in comparison with the entire crypto market. It often holds an inverse correlation with Bitcoin and altcoins.
TradingView knowledge reveals that USDT.D dropped steadily from over 5% to 4.1% in Q2. After transferring sideways in July, it has began to rise once more in August, reaching 4.4%.
The rise in USDT.D suggests a rising risk-off sentiment. Traders are seemingly promoting crypto property into stablecoins like USDT to attend for higher entry factors, which signifies rising warning because the market heats up.
If USDT.D continues to rise all through August, this divergence may trace at a Bitcoin correction.
Some analysts even predict that USDT.D may rise to five% in August. Nonetheless, not everybody sees this as destructive. Some consider it may supply a precious shopping for alternative for altcoins.
“USDT dominance may go round 4.7%-4.8% within the coming weeks. This’ll drain liquidity from cash, and will lead to a pointy correction. Nevertheless it’ll be a golden shopping for alternative just like April 2025,” investor Niels predicted.
Historic knowledge reveals that Q3 is often Bitcoin’s weakest-performing quarter. August typically ranks because the worst month inside Q3.
If confirmed, these divergence alerts may make August 2025 a month to look at intently, not only for dangers but in addition for potential long-term alternatives.
The publish Analysts Warn of three Bitcoin Divergence Alerts in August appeared first on BeInCrypto.