Bitcoin's Potential Double Top Structure Raises Concerns

According to BlockBeats, Coindesk analyst Oliver Knight has highlighted similarities in Bitcoin's current price movement with on-chain indicators from 2021, suggesting a potential 'double top' structure. Knight emphasized the importance of monitoring the weekly RSI, which has shown bearish divergence in March 2024, December 2024, and May 2025. The RSI, a technical indicator, assesses average gains and losses over a period to identify overbought or oversold conditions. Bearish divergence occurs when the RSI trend moves downward while the price trend moves upward. Additionally, the trading volume during the recent breakout is lower than when Bitcoin initially surpassed $100,000, indicating weakening momentum. Both cryptocurrency and institutional trading platforms have seen a decline in volume, with CME Bitcoin futures failing to exceed 35,000 contracts in three of the past four weeks. In contrast, during the previous $100,000 breakout, volumes frequently surpassed 65,000 contracts, with three instances exceeding 85,000. Furthermore, open interest has diverged from price trends, currently down 13% from January's initial rise to $109,000, while the price has only decreased by 5.8%. Four years ago, when Bitcoin reached $69,000, despite a 6.6% price increase, open interest fell by 15.6% from the initial peak of 65,000 contracts. Knight concluded that these indicators suggest that although Bitcoin's price may reach new highs similar to 2021, the momentum behind this movement is diminishing.