Bitcoin is losing its bullish momentum: Is a drop to $115K next?

Key Points

1. A hidden bearish divergence on the RSI suggests weakening bullish momentum for Bitcoin, potentially leading to a corrective move similar to a 20% drop observed in March 2024.

2. A CME gap between $114,380 and $115,635 could act as a downside magnet, with historical data showing Bitcoin often fills such gaps, possibly pushing prices to new weekly lows in July.

3. Bitcoin is currently in a distribution zone (80%) according to the IBCI, indicating a warning sign of a potential end-of-cycle top, though other indicators like the Puell Multiple and STH-SOPR have not yet peaked.

4. Traders should prepare for short-term volatility, as the long-term bullish trend for Bitcoin remains unchanged despite these bearish signals.