Bitcoin Divergence Signals Flash Warning in August — Market At Crossroads

Key Drivers to Watch

1. Bitcoin vs Weekly RSI Divergence

Bitcoin reached higher highs in July, but the weekly RSI failed to follow—mirroring 2021’s top structure—suggesting fading strength and potential correction.

2. DXY vs BTC Correlation Breakdown

As the U.S. Dollar Index climbs (currently ~98.9), Bitcoin has slid—repeating the inverse dynamic often seen during risk-off episodes. An inverse head-and-shoulders pattern in DXY adds bearish weight.

3. Rising USDT Market Share

Stablecoin dominance (USDT.D) rebounded to 4.4% and may climb further. Surge in USDT metrics signals a risk-off shift as investors rotate into cash-like assets for safer footing.

Coinccino Take

“The convergence of RSI divergence, dollar strength, and stablecoin market inflow makes August look like a stress test month for Bitcoin. These are classic prelude signals — not guarantees — but historically they’ve preceded notable pullbacks. Combine this with fading momentum and rising altcoin weakness, and the setup looks delicate.”

Global Relevance

Technical Outlook Snapshot