Bitcoin attempted to stabilize above $105,000 on June 1 following a strong monthly performance that saw an 11% gain for May.
The cryptocurrency faced ongoing pressure throughout the week, bringing it back to key support levels established earlier in the 2024 bull market.
Among these was the December 17 local high of roughly $104,450, which traders watched closely heading into the new week.
Analyst Matthew Hyland labeled the weekly close as “pivotal” for the short-term trend.
Hyland pointed to a developing bearish divergence between Bitcoin’s price and its relative strength index (RSI) on the weekly chart.
RSI, which gauges momentum, appeared to weaken even as price attempted to climb—raising caution flags for traders.
Bearish Divergence Raises Concerns
Trader Titan of Crypto echoed those concerns, warning his followers that a potential RSI bearish divergence was forming.
“Still unconfirmed but worth watching,” he posted on May 31, alongside a chart referencing Fibonacci-based fair value gaps (FVGs).
These gaps often indicate price areas where trading activity was unbalanced, and two key FVG zones were highlighted at $97,000 and $90,000.
Titan added, “After a +50% run, a cooldown wouldn’t be a bad thing. Healthy market structure matters.”
$100K Level Could Act as Magnet
CrypNuevo, another trader analyzing order book data, suggested that $100,000 could serve as a price magnet if selling pressure continues.
“It’s a strong psychological level and liquidity tends to stack in these levels,” they noted, anticipating a possible retest.
Despite Bitcoin’s 8% decline over the past week, CrypNuevo remained bullish on the broader trend.
“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,” they predicted.
They concluded that overall market structure remains bullish, with the bull market support level near $84,000 closing in from below.
