Bitcoin Faces Bearish Warning Signs Despite Strong Price Action

Bitcoin’s rally has shown impressive resilience through 2025, but fresh technical signals are sparking concerns that momentum could be slipping.

Analyst Joao Wedson highlighted three areas traders should watch closely. First, Bitcoin has lost its trendline support against the Russell 2000 index, a benchmark it has historically tracked with high correlation.

If this divergence continues, it may suggest cracks in the broader risk-on trade.

Second, the Sharpe Ratio – a measure of risk-adjusted returns – has dropped below 2024 levels. This shift indicates weaker performance relative to volatility, hinting that Bitcoin’s price swings may deliver lower returns than in past cycles. Historically, such declines in Sharpe have preceded periods of consolidation or retracement.

Finally, while Bitcoin has set new all-time highs against the U.S. dollar, it has yet to replicate that breakout across other major fiat pairs like the euro and ruble. The BTC/EUR chart, for instance, shows resistance just under €106,000, with price retreating after testing the level. This failure to establish global highs raises questions about the true strength of the current move.

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Put together, these signals point to potential turbulence ahead. The cycle may not be over, but traders could face smaller and choppier moves rather than explosive rallies. Whether this develops into a larger correction or simply a pause will depend on how Bitcoin responds to these key technical and macro pressures in the weeks ahead.