A long-term momentum signal suggests Bitcoin’s bull run could be losing steam, though traders remain firmly positioned for fresh highs later this year.
The Relative Strength Index (RSI) on Bitcoin’s monthly chart has begun diverging from price, with the indicator forming a lower high as BTC pushed above its December peak during July–August. Such divergences often foreshadow trend exhaustion. Compounding the risk, BTC is once again testing resistance from a multi-year trendline linking prior bull market tops.
Still, institutional flows remain optimistic. According to Wintermute’s Jake Ostrovskis, block trades show strong activity in December BTC call spreads targeting $125K to $160K, while Ethereum positions clustered around $4,800 for September.
These privately negotiated block trades reveal confidence in a year-end surge, with some desks eyeing levels near $190,000. For now, Bitcoin trades around $110,500, down 4.6% this month.
