Bitcoin traders target $100K and under as monthly close seals 11% gain

Key points:

Bitcoin RSI data forms a bearish divergence, getting traders in position for lower levels next.

The May monthly candle close seals 11% gains, but the weekly close is the event on the radar for market participants.

Areas of interest include $97,000 as well as the psychologically significant $100,000 mark.

BitcoinBTC$105,061BitcoinChange (24h)0.54%Market Cap$2.08TVolume (24h)$20.92BView Moresought to preserve 2024 all-time highs on June 1 after the monthly candle close delivered 11% gains.

Bitcoin RSI divergence primes traders for new lows

Data fromCointelegraph Markets ProandTradingViewshowed BTC/USD attempting to reclaim $105,000 into the weekly close.

Sustained downside throughout the week brought Bitcoin back into contact with significant support levels from earlier in the bull market.

Chief among these was thelocal top from Dec. 17, 2024at around $104,450.

Commenting, popular trader Matthew Hyland described the weekly close level as “pivotal.”

Hyland uploaded a chart showing a bearish divergence between price and the relative strength index (RSI) on weekly timeframes.

RSI is aclassic trend strength indicator, which measures momentum at given price points.

Continuing, fellow trader Titan of Crypto warned that the divergence could have wider implications for bulls.

“A potential RSI bearish divergence is forming on the weekly chart. Still unconfirmed but worth watching,” hetoldX followers on May 31.

An accompanying chart referenced so-called fair value gaps (FVGs) as measured by Fibonacci retracement levels, these showing imbalances between buyers and sellers as price ascended to its current area.

Two FVG zones of interest were at $97,000 and $90,000.

“After a +50% run, a cooldown wouldn’t be a bad thing. Healthy market structure matters,” Titan of Crypto acknowledged.

BTC price uptrend “intact”

Based on order book liquidity data, trader CrypNuevo suggested the $100,000 could function as a price magnet should the market fall further.

Related:How low can the Bitcoin price go?

“It’s a strong psychological level and liquidity tends to stack in these levels. Potential retest of this level first,” part of anX threadread on the day.

CrypNuevo maintained faith in the overall bullish market structure despite BTC/USD dropping 8% over the past week.

“So I think we’ll probably drop to $100k and play around there for some days – even a slight temporary drop below it to shake the market would make sense.,” he concluded.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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