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The king of cryptocurrencies is showing resilience and shattering records this summer.
After punching past $109,588 — its former ATH — Bitcoin has now priced in a new high at $111,880 with nothing but blue skies ahead. Despite this, there are some signals that a pullback could occur.
Extended RSI Divergence on 4-Hour and Daily Timeframe
Bearish divergences on the 4-hour and daily timeframe are the first signs of weakness. Though the highs are not back-to-back, the RSI shows weakness across the broader uptrend. These are warnings for traders looking to FOMO a long position.
Does this mean punching in a short right now? 🤪 No!
These signals alone do not indicate a reversal, we need a second sign of weakness to align with the signal.
Wait for a:
- Bearish engulfing candle or evening star at the highs
- Close below the previous ATH ($109,588)
- Failure to hold High Volume Nodes (HVN)
Key Price Levels in Play: HVNs and POC Support Zones
With Bitcoin’s rapid price swings, plotting support zones can get tricky. That’s where the volume profile helps. Instead of just marking highs and lows, we look at where volume was concentrated during recent sessions.
These areas — called High Volume Nodes (HVNs) — show where traders were most active. If price revisits these zones, they’re likely to act as strong support. The Point of Control (POC), shown by the red line, is the most traded level and often the key zone to watch.
Previous ATH
- Level: Approximately $109,588.00
May 21st, 2025 (Previous Day)
- HVN #1: Approx. $108,880 to $109,200
- HVN #2: $107,250 to $107,725 (aligned with 4H EMA-20)
- POC: Approx. $106,525
May 20th, 2025
- HVN #1: Approx. $105,900 to $106,400
- POC: Approx. $106,000
May 19th, 2025
- HVN #1: $104,550 to $105,450 (aligned with 1D EMA-50)
- POC: Approx. $103,000
Notice that the 4H Exponential Moving Average-20 and EMA-50 have both shown their reliability as support levels in May, making them valuable watch zones. Coincidentally, both of them are aligned with a HVN zone (bolded in the table above).
Closing Thoughts
Whether this is just a pause before the next leg up or the start of a short-term correction, these HVN zones and EMA levels will be the battlegrounds where bulls and bears clash.
Traders should stay sharp — the reaction at these levels could set the tone for Bitcoin’s next major move — whether it’s continued upside or a retracement from here.
As for upside targets, Bitcoin has a chance of reaching $119K or $166,840 according to the logarithmic curve regression.
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DISCLAIMER: For educational purposes only. Trading comes with substantial risk, leading to possible loss of your capital. Traders are advised to do their own due diligence before investing.
