Bitcoin has entered a critical danger zone as support levels continue to recede, putting the market on edge. Amid this decisive collapse, the RSI is quietly showing a bullish divergence, a subtle but meaningful early signal that momentum may be preparing to shift. The charts now paint a tense picture: bearish pressure remains dominant, but the first signs of one potential reversal has appeared.
Support levels are crumbling as Bitcoin extends its downtrend
According to an update shared by Crypto Candy on The price held the $93,000-$95,000 zone for a short period, but ultimately failed to maintain that structure, triggering another downward move. The speed at which each crisis occurs shows how fragile market sentiment currently is.
With the most recent support lost, Bitcoin has fallen to lower levels and remains under bearish pressure. If this momentum continues, Crypto Candy notes that the next area of interest is between $86,000 and $87,500, a key support where buyers can look to slow or stop the decline.
Should Bitcoin manage to stay within this $86,000-$87,500 range, a near-term reversal becomes possible. Even a modest rebound could provide temporary relief from the broader downtrend. However, such a response would still require confirmation before there would be a sustainable shift in momentum.
If that support does not hold, Crypto Candy warns that the market is in for another steep decline. A sustained collapse would reinforce the ongoing bearish narrative and open the door to what he described as a “waterfall scenario.”
Bullish divergence occurs on the 4H chart
Crypto analyst Chad recently noted this in an X after that Bitcoin is showing a notable bullish divergence between its price action and the RSI (Relative Strength Index) on the 4-hour chart. This divergence is a technical signal where the price makes a lower low.
Chad recognizes that the price is clearly in a short-term downtrend and will have to reverse at some point. While he admits he doesn’t know the exact timing of the reversal, he emphasizes that the bullish divergence is the first positive sign that sellers are losing control and that a structural shift may be near.
To officially turn the short-term market structure bullish again, Chad outlines a simple progression: price must first make a higher high to break the current downtrend, and then confirm that break by making a higher low. This sequence is necessary to confirm that buyers have successfully taken control of the price.