Key Takeaways:
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A hidden bearish divergence to RSI’s hints of weakening bullish momentum for Bitcoin.
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A CME space between $ 114,000- $ 115,000 can act as a magnet.
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The market rotation and an assortment of indicators show bitcoin in a distribution zone.
Bitcoin (Btc) shows signs of potential weakness, with three critical charts suggesting the possibility of new weekly lows in July. While long-term trend remains intact, merchants should brace for short-term volatility.
Bitcoin is currently showing a hidden difference -bearish variety between its price and the relative -child index of power (RSI), a momentum indicator that measures price movement force.
A hidden bearish divergence occurs when the price produces higher, but the RSI develops equal or lower ones. This difference -this varies indicates the weakening of the momentum behind the rally, which often leads to downside corrections.
This same pattern appeared in March 2024, after which Bitcoin Saw a 20% price collapse on the following days. Also, ongoing diversity can lead to another transfer of correction, which potentially push bitcoin into fresh short-term lows.
The BTC CME gap has a -looms as a downside magnet
A CME space exists between $ 114,380 and $ 115,635 in the day -to -day chart. CME gaps when bitcoin trade out of regular times in Chicago Mercantile Exchange (CME), which leaves price voids often filled with active trading sessions.
These gaps are important because historical data shows that Bitcoin tends to “fill” them, that is, the price retreats to cover the unaccompanied range. In 2025, seven of the nine CME gaps were filled, with only it and a smaller gap between $ 91,970 and $ 92,450 still open.
The high fill rate emphasizes Bitcoin’s chances of revisiting these levels, leading to a short -term sink to close the $ 114,000 bracket.
Related: Traditional companies enter the Crypto Treasury game with BTC, XRP and Sol Buyys
Bitcoin is in a distribution zone
Anonymous Crypto analyst Gaah mentioned The index bitcoin cycle indicators (IBCI) enter the distribution of the zone, a historical region linked to the Euphoria market and temporary tops. This is the third said entry into the current bull cycle.
The analyst explained that while the index only touched the lower base of the zone (80%), not the climax (100%) visible to the previous tops of the cycle, the reading served as a warning signal. Basic indicators such as Puell Multiple and STH-SOPR (short-term holder spent by the output profit ratio) will remain below the middle-level levels, suggesting that retail speculation and aggressive income from miners have not been recorded. Gaah added,
“Ibci behavior therefore offers an important warning sign: we are in a high-time risk zone in a short-term correction, but not required at a main end-of-cycle end.”
Related: Bitcoin due to ‘massive short squeeze’ while BTC’s dominance has bouncing at 62%
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
