Bitcoin is showing signs of a possible trend reversal, signaling a potential shift in market direction.

Bitcoin (BTC), the largest cryptocurrency globally, is facing indications of a downturn following its recent price rally, with analysts warning of an impending sell-off.

This situation emerged shortly after the U.S. Federal Reserve lowered interest rates, which briefly boosted Bitcoin's price.

According to Ali Martinez's analysis on X, Bitcoin is forming a bearish divergence on the 4-hour chart's Relative Strength Index (RSI). This divergence occurs when the price continues to rise, but the RSI falls, often signaling a possible reversal.

Currently, Bitcoin is sustaining its upward trend, trading at $63,319, representing a 0.8% increase in the past 24 hours and an 8.2% rise over the last week.

Trading volume has surged by 93%, reaching $29.4 billion, reflecting growing interest from investors. Bitcoin is now nearing the key resistance level of $64,000.

Optimism in Bitcoin's performance stems from the participation of both retail and institutional investors. MicroStrategy, a well-known financial company, recently added another $458 million worth of Bitcoin to its holdings.

Spot Bitcoin ETFs have also seen substantial inflows, with $192 million added on September 20.

Research indicates that the correlation between cryptocurrencies and U.S. stocks has grown stronger, driven by broader macroeconomic factors.

The correlation coefficient between the S&P 500 and the top 100 digital assets is now at 0.67.

While it remains uncertain whether Bitcoin’s decline is over, the market has shown stability in recent days. Investors will be closely watching inflation data and upcoming statements from the Federal Reserve.