A broadly tracked technical indicator is signaling a weakening of upward momentum amid bitcoin’s renewed push towards file highs.

The 14-week relative power index (RSI), a momentum indicator, has fashioned a decrease excessive this yr, decoupling from the continued uptrend in costs for bitcoin (BTC).

The RSI’s bearish divergence signifies uptrend fatigue and suggests scope for a bull market correction.

The cryptocurrency fell sharply following the affirmation of RSI’s bearish divergence in February 2017 and August 2017 (above proper).

Bitcoin peaked at $13,880 in June 2019 with a bearish divergence on the weekly chart. That resistance was topped in October 2020 (above proper).

The main cryptocurrency is at present buying and selling at $56,500, for a 95% year-to-date acquire, having narrowly missed on Thursday the file excessive of $58,332 reached Feb. 17.

A convincing transfer above the psychological resistance of $60,000 would seemingly elevate the RSI above its down trendline. That will invalidate the bearish divergence and should invite stronger chart-driven shopping for stress.