Analysis: Technical indicators suggest that Bitcoin may further retract to $38,000

According to CoinDesk, since the debut of the U.S. spot ETF last Thursday, Bitcoin (BTC) has fallen more than 5% to $42,600, showing a typical "sell-the-fact" price behavior. According to an analysis of bitcoin price patterns and technical indicators by 10x Research, this selling trend may continue in the short term. 10x Research is led by Markus Thielen who pointed out in a note to clients on Monday that "Bitcoin's RSI divergence signal indicates an adjustment," adding that the pullback might stop near the dynamic support level of $38,000. A bearish divergence occurs when prices reach new extremes but momentum indicators such as Relative Strength Index (RSI) fail to do so, implying upward fatigue. Last week BTC reached a two-year high exceeding $49,000 but was not confirmed by a 14-day RSI. The subsequent price drop validated the bearish divergence. In addition, MACD histogram used for measuring trend strength and changes has dropped below zero indicating a bearish momentum shift.