Divergence Spells Trouble For Bitcoin

Market Overview - The stock market has faced challenges this week, with the Spyder Trust (SPY) and Invesco QQQ Trust (QQQ) both down 0.90% for the week, marking three consecutive days of decline, causing trader anxiety [2] - The S&P 500 advance/decline line closed below its EMA, indicating a corrective mode, with initial support reached and stronger support levels identified [4] Sentiment Analysis - The American Association of Individual Investors (AAII) reported no change in bullish sentiment at 41.7%, while bearish sentiment decreased to 39.2% from 42.2% the previous week [2] - Historical data shows that the bull%-bear% reached a low of -30 during the SPY's bottoming phase in March-May, with expectations for a rise to the +20 area before a stronger correction [5] Bitcoin Market Insights - Bitcoin to US Dollar (BTCUSD) has experienced higher highs in 2025, testing yearly resistance at 124,723 in August before declining to the 20-week EMA at 109,559 [5] - A bearish divergence was confirmed in the MACDs at the end of August, indicating a potential for a deeper decline in BTCUSD [6] - Despite a positive reaction in the stock market to the PCE inflation report, BTCUSD remains down 5% for the week, with anticipated resistance in the 111,000-113,000 range for any potential rebound [7]