BTC Data Shows Bitcoin to Drop Below $115K

Takeaways from the conference:

• The RSI shows a hidden divergence that is bearish, indicating a weakening of the bullish trend for Bitcoin.

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

• Bitcoin is in a zone of distribution based on market cyclicality, a variety of indicators and indices.

BitcoinBTCThree critical charts suggest that the price could reach new lows each week in July. While the overall trend of long-term price movement remains unchanged, traders must be ready for some short-term volatility.

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. The divergence indicates a weakening of the momentum that is driving the rally. This can lead to a correction on either side.

The same pattern was seen in March 2024. Bitcoin In the days that followed, we saw a drop of 20% in price. The divergence could also lead to a new corrective movement, pushing Bitcoin down to new short-term levels. 

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 a price void that is often filled by active traders during busy sessions.

The historical data shows that Bitcoin has tended to increase in value. “fill” They, that is, the price returns to 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.

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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.

While the index reached only 80% of the bottom base, not 100% as seen during past cycles tops. The reading was still considered a warning. The Puell Multiple (or STH-SOPR, or Short-Term Holders Spent Output profit Ratio), and other key indicators remain well below the mid-levels. This suggests that both retail speculation and aggressive profits-taking by miners are still not at their peak. Gaah said. 

“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. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.