Bitcoin Analyst Warns of Potential Reversal as Bearish Divergence Appears

Cryptocurrency analyst "Bluntz" issued a cautionary note on social media, highlighting a developing bearish divergence in Bitcoin's daily chart. This technical pattern suggests weakening buying pressure, potentially foreshadowing a short-term price reversal, even if the price continues to rise or consolidate.

In a May 19, 2025 tweet, Bluntz stated: "There's a daily $BTC bear div brewing here if it closes red by tomorrow. It's unfortunate that it's appeared before fresh ATHs, but it's the first one since last year. Be careful with longs IMO." [Image omitted]

A red close on the day would confirm the divergence, the first such signal in several months. This warning comes as investors anticipated a potential breakout to new all-time highs. Bluntz advises traders to exercise caution with long positions in the short term.

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Meanwhile, Bluntz maintains a positive outlook on gold. Applying Elliott Wave principles, a frequently used analytical tool, Bluntz suggests gold has completed an ABC correction, a technical structure often preceding a price rally. This updated projection indicates a potential gold price surge to approximately $3,600, potentially setting the stage for a record-breaking price movement.

The post originally appeared on Coindoo.