Bitcoin RSI Divergence Signals Warning as Price Holds New High Range—Echoes 2021 Cycle Peak

COINOTAG News on August 29 cited chart work by analyst @ali_charts indicating the Bitcoin price has been sustaining a new high range while the RSI has been drifting lower, forming a divergence similar to patterns observed prior to the 2021 cycle peak; this was presented as a technical observation in recent crypto news coverage.

The Relative Strength Index (RSI) is a momentum oscillator that quantifies the speed and magnitude of price moves on a 0–100 scale. Market practitioners typically treat readings above 70 as potential overbought conditions and below 30 as potential oversold conditions, using the indicator to inform short-term timing and risk assessments.

For professional investors, such a divergence serves as one input among many—helping to refine position sizing and risk management—rather than a standalone forecast; the RSI should be combined with on‑chain data and macro context to form a comprehensive trading framework.