The Bitcoin market remained relatively stable over the weekend, with prices hovering below $106,000 as sellers continued to exert pressure. The weekly divergence has solidified, indicating a potential bearish retest in the making. Despite attempts to break free from the bearish trend, Bitcoin failed to establish a strong foothold above a key resistance level, keeping bearish sentiments alive. As we head into June, the market is poised for a potentially volatile ride in either direction, with the burning question being whether Bitcoin can reclaim the $110,000 mark.
Investors are currently wary of the next price action, with Bitcoin bulls managing to hold above a crucial support level at $102,153 since breaking out of the May range. The recent bounce has provided some validation to the bullish narrative, but traders are closely monitoring the $103,000 to $107,000 range, where significant trading activity is concentrated. This indicates that traders are prepared for various scenarios, leading to a buildup of liquidity on both sides of the market.
Data from Coinglass reveals a short liquidation event following a price surge above $105,500, while long positions remain relatively untouched around $103,500. This suggests that the market may be gearing up for a test of the price range, potentially fueling a bullish breakout towards the upper limit of $106,200. However, breaking above this level would require substantial liquidity, with trading volumes showing a decline since the beginning of the month despite continued bullish dominance.
Looking ahead to June 2025, Bitcoin’s price is expected to consolidate near recent highs before a potential correction looms. Historical price patterns suggest a steep pullback could be on the horizon, casting doubt on the bullish outlook. Renowned analyst AlphaBTC points to similarities in recent price action that could lead to a correction towards $90,000 or lower before a bullish reversal propels Bitcoin to new all-time highs, potentially reaching $125,000. Key indicators like RSI, MACD, CMF, and DMI hint at an impending bearish reversal, supporting the case for a temporary downturn.
Despite the current consolidation phase, institutions like El Salvador, Metaplanet, BlackRock, and Strategy continue to accumulate Bitcoin, signaling confidence in the long-term prospects of the digital asset. Some entities are even raising funds to acquire more Bitcoin, underscoring a strong bullish sentiment as the market awaits the next phase of the bull run. With a mix of uncertainty and optimism shaping the landscape, Bitcoin’s price trajectory in June is poised to be a crucial turning point for investors and traders alike.