Bitcoin entered the weekend under sales pressure, reducing momentum and tested key technology levels amid thinning weekend liquidity.
Analyst Altcoin Sherpa highlighted the $100,000 level as a key support zone. He warned that breakdowns below this area could cause a sudden decrease.
Bitcoin has set up $100,000 in support. Source: Altcoin Sherpa x
The chart shows that Bitcoin has formed a potential distribution pattern near the top, repeatedly retesting support for $100,000. Altcoin Sherpa said that if this level breaks, the next important area to watch is $96,000. He noted that this level coincides with controls (POC) and 200-day exponential moving averages (EMA) from November 2024, increasing its importance as a possible bounce zone.
Volume data also shows hilarious activity ranging from $95,000 to $100,000, indicating previous strong interest. A break below $100,000 can cause sharp movements towards this liquidity pocket.
Altcoin Sherpa has concluded that $100,000 is crucial for now. He recommended seeing Bitcoin’s initial reaction at this level before hoping for even more downsides.
Bitcoin slides into the important $102K-10,000 dollar zone.
Skew also warned that the $102,000 to $100,000 range marks very important support areas. Analysts posted a four-hour chart showing Bitcoin opens daily, monthly and hovering just above major low capacity areas.
Bitcoin drops into major demand zones. Source: Skew x
The chart shows a clean rejection close to $104,463 (monthly opening). The price is below the daily opening at $102,248 and now sits in thin liquidity, with volume support of around $97,000.
Volume Profile Analysis highlights that Bitcoin previously consolidated around $102,000 to $104,000, forming the last mass of nodes. Under this zone, prices may drop faster, especially on weekends when orders are thinner, due to weak support and limited bids.
Skew highlighted the importance of the $102,000 to $100,000 range. He noted that although there was a movement over the weekend, the response in this zone is important in the direction of short-term prices.
Bitcoin RSI drops to 39.5, showing weak momentum ahead
Meanwhile, Bitcoin’s daily relative strength index (RSI) fell to 39.51, weakening its bullish momentum. RSI has been falling consistently since mid-May, and is now below the signal line at 51.60.
Bitcoin RSI shows bearish differences. sauce:tradingView
The indicator was almost over 50 between April and early May, suggesting previous strength. However, recent crossovers and below 40 levels suggest that sellers are gaining control. If RSI continues to decline, it can enter less than 30 sales territory, typically seen during extended downtrends.
The sustained divergence from the signal lines also indicates limited purchasing pressure. Traders often view this setup as a sign of increasing weakened momentum, especially when prices fall below support levels, with RSIs that have fallen.
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