Bitcoin Bull Market Fading? Flows Stay Bullish

Bitcoin faces warning signs from technical iindicators

tradingview.com

Bitcoin’s 14-month Relative Strength Index (RSI) is showing a bearish divergence, a pattern that usually signals weakening momentum. Although BTC prices remain high, momentum is not confirming the rally, hinting that the bull market could be nearing its end.

Derivatives flows remain strongly Bullish

Despite the bearish warning, derivatives capital flows are leaning bullish. Call spreads with December expirations are attracting significant inflows, showing that traders are betting on a strong year-end rally. This reflects confidence from both institutional and speculative investors in Bitcoin’s long-term upside potential.

Conflicting market signals create uncertainty

The current market presents a dual outlook:

   • Technical indicators: RSI suggests fading momentum and a possible reversal.

   • Capital flows: Derivatives positions continue to build, showing strong optimism.

This conflict leaves investors questioning whether the bearish signals will dominate or whether sustained inflows can keep the bull market alive.

What this means for investors

These mixed signals highlight the importance of a balanced investment strategy. Investors should not rely solely on technical momentum but also consider on-chain data, derivatives positioning, and macro sentiment. By doing so, they can better prepare for either an extended rally or a potential correction ahead.

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.