BTC data points to Bitcoin dropping below $115K

Takeaways from the conference:

• Bitcoin’s bullish momentum is weakened by a hidden bearish divergence in the RSI.

• A CME gap between $114,000–$115,000 could act as a magnet. 

• Bitcoin’s distribution is based upon market cycles and various indicators.

BitcoinBTCIt is showing potential signs of weakness. According to three charts that are critical, there could be a new weekly low in July. Traders should be prepared for volatility in the short term, even though the trend is still intact on a long-term basis.

Bitcoin’s price is currently exhibiting a bearish divergence with the relative strength indicator (RSI), a price movement momentum indicator.

When the price forms higher highs but the RSI makes equal or lower heights, this is a hidden divergence. Divergence can indicate a slowing rally momentum, which often leads to corrections on the downside.

In March 2024 the same pattern appeared. Bitcoin In the days that followed, we saw a drop of 20% in price. Similarly, this divergence might lead to another correction, possibly pushing Bitcoin’s price to new lows in the short term. 

BTC CME Gap is a Downside Magnet

CME Gaps are found between $114.380 – $115.635 per the daily charts. CME gaps occur when Bitcoin trading occurs outside the regular Chicago Mercantile Exchange hours, leaving price voids which are filled by active traders during normal sessions.

This is important because Bitcoin’s historical trends show it to be a volatile currency. “fill” They, that is, the price returns to cover the non-traded range. Seven of the nine CME gap have been closed by 2025. Only this and another smaller one between $91,970 to $92,450 remain.

Bitcoin is likely to return to its previous levels in the near future, resulting in a dip that will close out $114,000 on a short term basis.

Related: Traditional companies enter the crypto treasury game with BTC, XRP and SOL buys

Bitcoin has a distribution area

Anonymous crypto analyst Gaah noted The Index Bitcoin Cycle Indicators has entered distribution zone. This is a historically associated region with market euphoria, and intermediate tops. It is the third time in this bull cycle that we have seen such an entry.

Analyst explained that even though the index only touched the lower base (80%) of the zone, not the 100 percent peak seen at past cycle tops (100%), it still served as a warning. Puell Multiples and the Short-Term Holder Spent-Output Profit Ratio (STH-SOPR) are below mid-levels. These indicators suggest that aggressive profit-taking and retail speculating by miners has not peaked. Gaah continued. 

“The behavior of the IBCI therefore offers an important warning sign: we are in a zone of high corrective risk in the short term, but not necessarily at a major end-of-cycle top.”

Related: Bitcoin due ‘massive short squeeze’ as BTC dominance bounces to 62%

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.