The main dishes to remember:
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A downward divergence hidden from the RSI suggests to weaken the bullish momentum for Bitcoin.
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A CME difference between $ 114,000 and $ 115,000 could act as a magnet.
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The cyclicity of the market and an assortment of indicators show bitcoin in a distribution area.
Bitcoin (BTC) shows signs of potential weakness, with three critical graphics suggesting the possibility of new weekly stockings in July. Although the long -term trend remains intact, traders should prepare for short -term volatility.
Bitcoin currently presents a broken divergence hidden between its price and the relative force index (RSI), a momentum indicator which measures the strength of price movements.
A hidden down divergence occurs when the price is higher, but the RSI forms equal or lower vertices. This divergence alludes to weakening the momentum behind the rally, often leading to downward corrections.
This same scheme appeared in March 2024, after which Bitcoin experienced a price of 20% in the following days. Likewise, continuous divergence can lead to another corrective movement, potentially pushing bitcoin to fresh short -term lows.
BTC CME GAP is looming as a drop -down magnet
A CME difference exists between $ 114,380 and $ 115,635 on the daily graphic. The CME gaps are formed when bitcoin is negotiated outside of regular hours on the Mercantile Chicago Exchange (CME), leaving prices which are often filled with active negotiation sessions.
These gaps are important because historical data show that Bitcoin tends to “fill it”, that is to say that prices are delighted to cover the untreated beach. In 2025, seven gaps out of nine CMEs have already been filled, with only this one and a smaller gap between $ 91,970 and $ 92,450 still open.
The high filling rate highlights the chances of Bitcoin to review these levels, leading to a short -term drop to close the $ 114,000 tranche.
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Bitcoin is in a distribution area
The anonymous announcement of Crypto Analyst Gaah noted that the Bitcoin cycle indicators (IBCI) of the index have entered the distribution area, a region historically linked to market euphoria and temporary summits. This is the third entry of this type in the current bull cycle.
The analyst explained that if the index only touched the lower base of the zone (80%), and not the peak (100%) observed in the peaks of the past cycle, the reading still serves as a warning signal. Key indicators like the multiple Puell and STH-SOPR (production ratio of production spent in the short term) remain below mid-level, which suggests that retail speculation and the aggressive profit of minors have not yet reached a summit. Gaah added,
“The behavior of the IBCI therefore offers an important warning sign: we are in a high -term corrective risk area, but not necessarily at a top of the major end of the cycle.”
Related: Bitcoin due ‘Massive shorts squeeze’ while BTC dominance bounces to 62%
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
