Traders Monitor Bitcoin Weekly Close Amid Bearish RSI Divergence and Sub-$100,000 Price Targets

  • Bitcoin traders are closely watching the markets as weekly closes may dictate the next price movements, with significant attention on the $100,000 threshold.

  • Technical indicators suggest a cautious approach, as many anticipate a potential drop below current levels, with a bearish divergence in play.

  • Matthew Hyland, a prominent trader, labeled the upcoming weekly close as “pivotal” for determining Bitcoin’s immediate future.

Traders are alert to crucial support levels for Bitcoin as a potential downturn looms; key milestones include the significant $100,000 mark.

Bitcoin Price Action Faces Critical Test Ahead of Weekly Close

Market analysts are keenly watching Bitcoin’s (BTC) price movements as traders prepare for the weekly close. Recent data from Cointelegraph Markets Pro indicates BTC/USD is attempting to reclaim the $105,000 level, driven by sentiments surrounding potential new lows.

The ongoing week has seen sustained downward momentum, bringing the price into contact with critical support levels established earlier in the current market cycle. A notable focal point is the local top from late May, which previously saw BTC trading around $104,450.

As traders assess these developments, further unease is generated by the growing bearish divergence observed in the Relative Strength Index (RSI), a common tool used to gauge market momentum.

Bearish Divergence Signals Caution Among Traders

Trader Matthew Hyland has highlighted the importance of the forthcoming weekly close, describing it as crucial for market sentiment. He shared insights on social media, warning about the implications of the RSI divergence, indicating that the momentum may not support rising prices further.

“A potential RSI bearish divergence is forming on the weekly chart. It’s still unconfirmed, but it’s certainly worth monitoring closely,” Titan of Crypto pointed out to followers earlier in the week.

This divergence hints at an imbalance, where buyers may not be sufficiently driving the price higher despite an upward trajectory over the past weeks.

Key Psychological Milestones in Focus

Traders are particularly attentive to the $100,000 psychological level, as data from order books suggest this could act as a price magnet if Bitcoin continues to fall. CrypNuevo emphasized the significance of this level, stating, “It’s a strong psychological level, and liquidity tends to stack at these points.”

Even with a recent decline of approximately 8% over the last week, there remains an underlying bullish sentiment regarding Bitcoin’s market structure.

“The overall bullish trajectory is intact, and while a temporary slip below the $100k mark may occur, it is likely to quickly rebound,” he noted.

The Future of Bitcoin Trading Dynamics

As traders navigate these turbulent waters, it is essential to keep an eye on liquidity data, which may provide additional clues as to price directions. At this point, the possible retest of the $100,000 mark could play a significant role in shaping investor sentiment.

Market anomalies, such as the fair value gaps noted earlier, may also contribute to volatility, as participants adjust their positions in response to the evolving situation.

Conclusion

As Bitcoin approaches its pivotal weekly closing point, traders must remain vigilant to ongoing trends. Observing the interplay between psychological support levels and technical indicators will be essential for discerning the future trajectory of BTC prices. Investors are advised to tread carefully while remaining adaptable in these dynamic market conditions, focusing on maintaining a sound strategy.

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Source: https://en.coinotag.com/traders-monitor-bitcoin-weekly-close-amid-bearish-rsi-divergence-and-sub-100000-price-targets/