Bitcoin (BTC) began June by defending its 2024 highs, closing May with an impressive 11% monthly gain. However, technical signals and trader sentiment suggest a possible cooling phase, with key levels like $100,000 and $97,000 now under close observation.
Bearish RSI Divergence Sparks Caution
Traders are closely watching Bitcoin’s Relative Strength Index (RSI) on the weekly chart, as early signs of a bearish divergence emerge. This divergence indicates weakening momentum despite rising prices, a potential warning signal for short-term bulls.
“A potential RSI bearish divergence is forming… Still unconfirmed but worth watching,” one analyst noted. The RSI trend contrasts with recent price action, hinting at a possible market pullback or consolidation phase.
Fair Value Gaps Suggest Retest Levels
Another key technical factor is the emergence of Fair Value Gaps (FVGs) — zones where buyer-seller imbalances occurred during rapid price movements. Fibonacci retracement analysis places notable FVGs around $97,000 and $90,000, suggesting these levels may attract future price action if a correction unfolds.
“After a +50% run, a cooldown wouldn’t be a bad thing,” a market analyst observed, emphasizing the need for a healthy market structure and support testing.
$100K: A Psychological and Liquidity Magnet
Despite the short-term pullback, many traders believe $100,000 could act as both a magnet and support level. As a major psychological milestone, liquidity tends to concentrate around such round numbers, potentially leading to price consolidation or shakeouts around this area.
“We’ll probably drop to $100K and play around there… even a temporary dip below to shake out weak hands,” one trader suggested.
Bull Market Support Still Holding
While BTC/USD has dropped around 8% from its recent highs, analysts emphasize that the macro uptrend remains intact. The bull market support band — now catching up near $84,000 — continues to serve as a key structural floor in this ongoing cycle.
“The uptrend is intact; liquidity is above,” a crypto trader reaffirmed, signaling that while short-term volatility is expected, bullish momentum remains dominant.
Conclusion: As Bitcoin navigates through early June, traders are watching RSI signals, fair value gaps, and liquidity levels closely. $100K stands as a pivotal zone, potentially serving as both support and a staging ground for future moves. The bull market trend is intact — but caution remains warranted.