The run-up in the Bitcoin (BTC) cost toward $50,000 last week risks exhaustion due to a mismatch betwixt the cryptocurrency'due south toll and momentum trends.

So it appears the Bitcoin's price and relative strength index (RSI) have been moving in the opposite direction since late July. In doing so, even a strong button college in the BTC/USD bids has coincided with lower peaks in momentum, suggesting that the pair's upside momentum is weakening out.

Bearish divergence

A normal RSI momentum tends to tail the price action. That said, it rises when the price rises and falls when the price drops. But in some cases, the RSI deviates from pursuing the price trends, leading to a so-called RSI divergence.

Technical analysts consider RSI difference as a powerful signal to spot price reversals. For instance, a bullish divergence, wherein the cost falls and RSI rises, prompts traders to purchase the nugget in anticipation of a rebound. Similarly, a bearish departure—featuring rising prices and falling RSI—prompts traders to take profits at the elevation while expecting a pullback.

The Bitcoin daily chart beneath shows the cryptocurrency in bearish difference.

BTC/USD 1D chart featuring bearish deviation. Source: TradingView.com

The downside signal appears as Bitcoin struggles to pause bullish above $50,000. As of Sun, the benchmark cryptocurrency was trading at $48,387, or 4.nineteen% lower from its three-calendar month loftier of $50,505, accomplished on Aug. iii, following a similar 72.36% upside smash.

On the other manus, Bitcoin'due south daily RSI initially rallied in sync with prices but topped out on July 30, which was way ahead of price, hitting $50,505. Since July thirty, the Bitcoin toll formed a sequence of college highs while RSI printed lower highs, suggesting a weakening upside momentum.

A similar bearish divergence betwixt January and April 2022 was instrumental in predicting a Bitcoin toll driblet, equally shown in the chart below.

Bitcoin price-RSI difference from January-Apr 2022 menstruum. Source: TradingView.com

Bullish indicators

The bearish divergence betoken comes as Bitcoin holds strongly above $30,000, amidst apprehension that it would become a hedge of choice among accredited investors confronting inflationary pressures.

The perception has led many analysts, including investment researcher Lyn Alden and Fundstrat CEO Tom Lee, to predict a $100,000 valuation for the cryptocurrency in 2022.

On Friday, Bitcoin price shot upward by $1,500 in an hr after Federal Reserve Chairman Jerome Powell presented a pro-inflation, dovish policy outlook at this year's Jackson Pigsty symposium.

Equally a result, the biggest bullish indicator for Bitcoin remains the Fed's aggressive $120 billion a month asset buy program, coupled with its almost-cypher interest charge per unit policy.

Related: Bitcoin price stages a comeback as iii indicators reflect BTC's force

The stiff fundamental has prompted technical analysts to envision a long-term uptrend in the Bitcoin market. Namely, contained market analyst Teddy Cleps presented a bullish outlook for the cryptocurrency, based on key wave back up that acts as an accumulation surface area for traders.

Bitcoin 4H chart featuring wave back up. Source: Teddy Cleps, TradingView.com

Similarly, Ryan Clark, another market place analyst, noted that Bitcoin has been merely consolidating beneath $l,000 just like when it was trading below $24,000 before the Dec 2022's bullish breakout.

On the other paw, TraderXO noted that Bitcoin could still autumn towards the $39,000-40,000 surface area merely remained convinced that the cryptocurrency would log an attractive rebound from the lower range.

The analyst marked Bitcoin's all-fourth dimension high virtually $65,000 as its long-term upside target.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves take chances, y'all should conduct your own research when making a decision.