The Wave Report #11 - Bearish divergence and the next big rotation

Reading time: 3 minutes

Two weeks ago, I warned you: Bitcoin was flashing a bearish divergence.

That signal hasn’t gone away.
It’s louder. 📢

And this isn’t just about Bitcoin’s next move.
It’s about what happens next for altcoins.

Let’s break it down.

1. The Big Picture: Bearish divergence is here 📉

Bitcoin keeps printing higher highs.
RSI keeps printing lower highs.

That’s bearish divergence. A textbook sign of slowing momentum.

We’ve seen this before:

• 2017 bull run → topped at divergence

• 2021 bull run → topped at divergence

Divergence doesn’t call the exact top.
But it tells us the rally is losing steam.
And when Bitcoin slows… capital starts moving elsewhere.

The time to make huge profits with Bitcoin is over.
Now it’s time to rotate into alts.

2. Zooming in: The weekly chart 🔍

We’re stuck just under $120K.
Every push higher? Met with selling.

Here’s the read:

• Stoch RSI is maxed out: Overbought and crossed bearish. 🚨

  No confirmation yet → both the fast and slow line need to close below 80 to seal it.

• RSI can’t break above 70 rejected at the purple downtrend.

This is the decision zone.
Either Bitcoin breaks clean and rips to $130K… 🚀
Or it rolls over. 🔻

In both cases, the next phase of rotation accelerates, the only question is how fast and how deep it goes.

3. The Daily: The battle range ⚔️

On the daily, we’re boxed between $117K and $120K.

But here’s the key signal:
The Stoch RSI just crossed up from oversold.

• Bullish scenario:
  If the cross confirms above 20, it can act like a spark — and in this market, sparks can turn into fire fast.
  Momentum could build into a short-term push toward $125K–$130K.

• Bearish scenario:
  If momentum fades and the cross fails to confirm, Bitcoin could roll back toward the lower end of the range ($117K) or even retest $112K support.
  That would mean the bearish divergence on higher timeframes is taking over.

Either way:
This range won’t last. The next move decides whether we get one final BTC burst… or if altcoin rotation kicks into full gear immediately.

The takeaway

Bearish divergence is real.
Momentum is slowing.
And in crypto, when Bitcoin takes a breath… capital flows into alts. 

This isn’t just about whether Bitcoin can reach $130K.
It’s about positioning for the next wave of rotation.

What’s next

Do you want to take full advantage of this altcoin rotation and not end up a bagholder when the party ends?

This Friday, I’m dropping The Altcoin Profit Blueprint:
A simple, actionable framework to navigate this rotation and secure profits before the herd panics.

Keep an eye on your inbox.
Friday. Don’t miss it.

— CrypFlow