Bitcoin Holds $100K Support: Market Analysis
Bitcoin (BTC) faces a pivotal week, with the $100,000 support level under intense scrutiny. Bulls are hoping a retest is complete, and recent price action offers some optimism.
Bitcoin Weekly Close: A Mixed Bag
Bitcoin briefly surpassed $106,000 before encountering selling pressure near the June 8th weekly close. While volatile, BTC/USD essentially maintained its weekly open position. This offers some hope after the recent $100,000 support retest. Analysts like Rekt Capital note a mixed picture; while the price broke a downtrend, a full bull market comeback remains elusive. Short-term support is around $106,200, with resistance at the same level.
Other analysts, such as Matthew Hyland, point to several daily candle closes above the 10-period simple moving average (SMA) as a positive sign. Long-term holders remain optimistic, anticipating a bullish continuation. CryptoKing highlights a potential volatility squeeze below resistance at $107,800, with $120,000 as a potential target if resistance is broken.
Liquidity and the $100,000 Level
Exchange order book liquidity continues to influence price action, with large-volume traders potentially manipulating price to grab liquidity. The $100,000 mark is critical, as a failure could trigger significant liquidations. Analyst Daan Crypto Trades highlights this risk, emphasizing that a break below $100,000 could accelerate a correction. However, he also acknowledges significant upside liquidity near all-time highs at $112,000, with potential stop-loss orders above.
Economic Indicators and the Fed
The week features key economic indicators like the May CPI and PPI, alongside unemployment data. The Fed's stance on interest rates is crucial. While inflation has slowed, the Fed's hawkish approach continues, drawing criticism from President Trump. Markets largely anticipate a rate cut only by September, according to CME Group’s FedWatch Tool. Mosaic Asset cautions that inflation may rebound in the second half of the year.
Short-Term Holder Resistance
Short-term Bitcoin holders (STHs) are a significant factor in price volatility. CryptoQuant identifies $106,200 as a key resistance level due to STH profit-taking. Conversely, support exists around $97,500, representing the cost basis for holders who bought three to six months ago.
Trump-Musk Feud: A Blessing in Disguise?
Santiment suggests the public feud between Donald Trump and Elon Musk may have already triggered a "sell the rumor, buy the news" scenario. The heightened social media discussion surrounding this event might indicate a market reversal, potentially marking the end of a recent price downturn.
Disclaimer: This article does not provide financial advice. Conduct thorough research before making investment decisions.
Codeum provides comprehensive blockchain security and development services, including smart contract audits, KYC verification, custom smart contract and DApp development, tokenomics and security consulting, and partnerships with launchpads and crypto agencies.