Key Insights:

• Bitcoin approaches $112K, with analysts warning of either a breakout toward $150K or pullback to key $94K and $80K zones.
• Spot and futures trading volumes fall to 2020 levels, signaling caution despite Bitcoin ETFs reaching $70B in assets.
• Institutional inflows into crypto funds hit record highs in May, with BitMine also acquiring 100 BTC for its treasury.

Bitcoin is flirting with resistance levels amid a cautious US inflation print and political heat in the US. BTC is at a critical technical junction, currently sitting just below the $110K – $112K resistance range. This zone, according to analysts, could be the one that decides if Bitcoin will surge to new highs or experience a sharp retracement.

Despite overall network activity and volumes signaling consolidation, institutional interest is growing while spot ETF inflows continue to rise.

Bitcoin Flirts with Resistance as Traders Watch $112K Zone

Bitcoin is trading at $109,480, just 2% off its previous all-time high of around $112K. Technical patterns indicate that a decisive break above this level could take prices to $135K – $150K.

But, rejection at this resistance could cause a short-term pullback towards $100K or lower to $94K and $80K support levels.

However, analysts like Crypto Patel are cautious, opening short positions with tight stop losses, saying that the market is overbought.

Moreover, the multi-year charts show an ascending wedge with the neckline resistance. In past cycles, this area has been a reversal zone.

Bitcoin continues to stay above its long-term trendline support, which is bullish for the medium to long-term investors. The strength of volume indicators also shows, but recent metrics suggest the hesitation of the market near these key price levels.

Spot Volumes Drop, Futures Activity Plummets to 2020 Lows

Spot and futures volumes at CEX have plummeted, with futures volumes back at October 2020 lows. TedPillows noted this as a possible ‘HODL mode’ among investors, something that’s common during market indecision or in transition.

A decreasing leverage, as indicated by the current futures to spot volume ratio, will decrease the volatility but will also make the immediate breakout potential less effective.

But daily Bitcoin network transactions have also fallen to levels not seen since late 2023. While institutional allocations are rising, this slowdown in on-chain activity is divergent from the capital inflows.

Lower activity can be taken as consolidation, but there is still space for sudden big moves once volatility returns. Weak volumes have not been enough to weigh on price, as there is strong ETF accumulation and treasury purchases.

The divergence indicates that long-term holders are accumulating while traders are cautious in the short term. Therefore, any breakout would probably require fresh volume strength to be sustained.

Institutional Flows Drive Optimism Despite Mixed Market Metrics

According to Morningstar, crypto fund net assets hit an all-time high in May as they saw over $7 billion in monthly inflows. This confirms that institutional appetite for digital assets as hedging tools in an increasingly unstable macro environment is growing.

At the same time, BlackRock’s IBIT ETF reached $70 billion in assets in 341 days, the fastest-growing ETF in history. IBIT was highlighted by Eric Balchunas to have beaten previous records set by GLD and others by a wide margin.

On the other hand, Robert Mitchnick of BlackRock says that this ETF growth continues to attract more institutions and wealth advisors.

But despite that, adoption is still in its infancy, indicating there is more long-term upside.

BitMine Immersion Technologies also announced its first step into Bitcoin treasury strategy by purchasing 100 BTC. The company acquired the coins using the proceeds from recent capital raises and with confidence in BTC’s long term value proposition.

Corporate accumulation of such helps to build a floor for Bitcoin prices, especially when paired with institutional ETF demand.

Bitcoin’s Market Cap Still Trails Major Asset Classes

Bitcoin, which has now hit $2 trillion in market cap, is still tiny compared to other global asset classes. The cryptocurrency runway for long-term growth is real estate, bonds, and equities, all of which are greater than $100 trillion.

Although the ETF activity and corporate involvement are on the rise, the Bitcoin Conference noted that this gap is indicative of early-stage adoption. Long-term holders are being supported by these comparisons, but price action is still dependent on short-term technical dynamics.

Key Insights:

• Bitcoin’s recent recovery from $100,500 to $105,500 shows an incoming short squeeze that could liquidate $15 billion in bearish positions.
• Analyst Rekt Capital notes that Bitcoin has just broken a two-week downtrend, with a daily close above $106,600.
• A 10% upward move in Bitcoin’s price could trigger $15.1 billion in short liquidations, as opposed to only $9.6 billion for a 10% downside move.

Bitcoin’s price action is heating up, and traders are watching the $100,000–$110,000 zone for a breakout in either direction.

After enduring a short-lived correction down to $100,500, BTC is back to showing signs of strength, with some analysts predicting a possible short squeeze.

The interesting part about this short squeeze is that it could liquidate over $15 billion worth of bearish positions. Here’s how multiple indicators are flashing bullish signals and the levels to watch in the days ahead.

Bulls Return as Bitcoin Reclaims Support

Bitcoin’s price dipped to around $100,500 earlier in the week. However, it has since rebounded and is hovering near the $105,500 mark by the 8 June weekly close. The recovery has since made investors more optimistic, as analysts continue to bet on a continued uptrend.

According to crypto analyst Rekt Capital, Bitcoin has now broken out of a two-week downtrend on the daily chart. This breakout, if followed by a daily close above $106,600, would indicate that BTC is turning prior resistance into support.

So far, Bitcoin has completed a daily close above the 10-day simple moving average, which means that the bulls are winning on the short-term as well.

This means that the rise to the upside has great chances of remaining intact.

Why a Short Squeeze Could Be Close

Market data shows that a huge concentration of short positions currently hanging in the balance. In a now viral Twitter (now X) post, Cas Abbe, a well-followed crypto analyst, pointed out the possibility of a short squeeze.

Think of a short squeeze as a scenario where rising prices force short-sellers to buy back their positions. This results in an even stronger uptrend, alongside massive liquidations.

According to Abbe’s analysis, a 10% price increase from current levels could trigger the liquidation of approximately $15.1 billion in short positions. In contrast, a 10% move to the downside would only result in about $9.6 billion in long liquidations.

This imbalance shows that the market is currently skewed in favor of bearish bets.

Considering how the market tends to do the opposite when it comes to investor sentiment, a bullish surge could be inbound.

“BTC liquidation cluster is now signaling an upside move,” Abbe noted.

He also pointed out that funding rates had turned negative over the weekend. This shows that traders are aggressively shorting the market. If Bitcoin were to rally beyond $109,000–$110,000, many of these short positions would be forced to close.

$100K Holds as Psychological and Technical Support

While many eyes are on the upside, others are still focused on the strength of Bitcoin’s $100,000 support level. Trader CrypNuevo mentioned that he was building long positions near the $100K mark, considering its status as the strongest psychological support area.

He also pointed out that it offered “easy invalidation,” which means that it is a clear stop-loss level for managing risk.

Rekt Capital agrees with this, stating that the $104,400 level was important for confirming a successful support retest. A weekly close above this level would mark four consecutive higher closes, which is a sign of growing bullish conviction.

CryptoKing, another trader, described the current price action as the “calm before the storm.” With BTC compressing just below the $107,800 resistance, he pointed out a classic volatility squeeze, saying “If we flip resistance this time, the next stop is $120K.”

Key Insights:

• Crypto analyst Michael van de Poppe believes that an altcoin season is on its way.
• Bitcoin’s current dominance is a major indicator for an incoming capital rotation into altcoins.
• Altcoins have seen some prolonged underperformance since late 2021, with many losing up to 90% of their value.

After spending the last few years underperforming compared to Bitcoin, the altcoin market might finally be near a turning point.

According to renowned crypto analyst Michael van de Poppe, an altcoin season could be just around the corner. While Bitcoin continues to take over headlines and market share, Van de Poppe believes the current outlook is a major accumulation opportunity for altcoins. Here’s a breakdown of his reasoning and what investors should be watching for.

Bitcoin’s Dominance is a Signal, Not a Barrier

Bitcoin currently holds more than 64% of the total crypto market cap, according to CoinMarketCap. This level of dominance shows that capital is flowing mostly into BT, while the rest of the market, especially altcoins takes a back seat.

However, Van de Poppe argues that this isn’t necessarily a bad thing. In fact, it could be a precursor to an altcoin season.

Historically, once Bitcoin reaches a local top and investors start to take profits, the next logical step is a rotation into altcoins. Traders tend to start looking for better risk-reward ratios and higher potential returns.

Altcoins tend to offer just that, especially when they are still trading far below previous all-time highs compared to Bitcoin

Altcoins Have Been in a Prolonged Cooldown

While Bitcoin has been rallying and reaching new highs almost every few months, altcoins have largely remained stagnant or in slow decline. Since the late stages of the 2021 bull market, many of these assets have lost as much as 90% of their value.

Even as Bitcoin has pushed past the $100,000 mark, many well-known altcoins like Ethereum, Litecoin and EOS have failed to keep pace. This underperformance doesn’t show poor fundamentals or a lack of development as anyone would think at first glance.

Instead, it shows a wider market pattern where Bitcoin is leading the charge, and altcoins are following with some lag. Van de Poppe believes that we are in the final stages of that lag, and the altcoin accumulation phase may soon give way to a full-blown rally.

Macroeconomic Forces Are Still in Play

Another reason for the delay in altcoin momentum is the general macroeconomic backdrop. Investors across worldwide markets are still dealing with fears over central bank policy, persistent inflation and the looming threat of a recession that shakes the world. These factors are making risk assets, including most cryptocurrencies less attractive in the short term.

Van de Poppe notes that while Bitcoin and gold have both benefited from this uncertainty, altcoins are often seen as more speculative.

As a result, while Bitcoin and Gold make headlines, the altcoins have been left behind as investors scramble for safer stores of value. Van de Poppe also pointed out that gold recently reached a new all-time high, which supports the idea that institutional investors are playing it safe.

Once market confidence improves, though, those same investors may begin rotating into altcoins especially if they’re hunting for yield or growth.

Where Are We in the Market Cycle?

The crypto community is still divided so far. Some believe we’re still in a bear market, while others argue that the next bull run has already begun. Van de Poppe is more on the latter side, and believes that now is the time for forward-thinking investors to start building positions in altcoins.

He explains that altcoin rallies often begin quietly, without much media attention. Early gains are typically taken advantage of by experienced traders and institutions that recognize the signs before the crowd catches on.

By the time the average investor hears the words “altcoin season,” many of the best opportunities have already passed. With all of this said, if the cycle repeats as it has before, the rotation into altcoins could start in the coming months.

Key Insights:

• Over $983M in crypto liquidations, with BTC and ETH long positions hit the hardest.
• Musk–Trump feud and China FUD trigger sharp sell-off in Bitcoin markets.
• U.S. Nonfarm Payrolls and ETF flows expected to guide Bitcoin’s next move.

Over $983 million in crypto positions were liquidated in just 24 hours as Bitcoin plunged below $101,000. Rising political tensions, ETF outflows, and market anxiety caused the sell-off. Investors are cautious ahead of Friday’s U.S. Nonfarm Payrolls report.

Massive Liquidations Rock the Crypto Market

One of the sharpest unwinds of the crypto market this year saw over $983 million in liquidations of digital assets.

Long liquidations on Bitcoin amounted to $340 million, and Ethereum came in second with $285 million. Data from CoinGlass shows that more than 227,000 traders were liquidated within 24 hours.

One of the biggest single-order wipeouts of the session was a $10 million liquidation on BitMEX’s XBTUSD contract. The total long-side damage was further added by high-leverage trader James Wynn, who lost a position worth over $20 million.

Key support of around $101,000 for Bitcoin was not held. This led to cascading liquidations, with the price dropping as low as $100,436.

Shorts also lost money, but just $94.5 million was wiped off bearish bets, showing the imbalance in market positioning.

Political Tensions and ETF Outflows Amplify Pressure

Tensions between Elon Musk and Donald Trump added to the growing bearish sentiment across crypto markets. Musk criticized Trump’s proposed tariffs, warning they could trigger a recession.

On the other hand, Trump countered by threatening to cut Tesla’s subsidies and federal contracts. The clash fueled broader concerns over policy instability and its impact on innovation-driven sectors.

In response to political threats, Musk also briefly announced that SpaceX would decommission its Dragon spacecraft, before walking that back.

That unsettled markets further, especially since Dragon is America’s only astronaut transport vehicle. This was seen as another sign of instability in the U.S. governance, especially for the tech and crypto sectors.

ETF flows, meanwhile, showed that institutional interest in Bitcoin was waning. On June 5, BTC ETFs saw $278.4 million in net outflows, and ETH ETFs had modest inflows of $11.3 million.

Market stress is leading institutions out of Bitcoin and into Ethereum, which is less volatile. The uncertainty was compounded by renewed fears over China’s stance on Bitcoin on social media.

Speculation about stricter trading or mining ban enforcement was not confirmed, but it triggered memories of previous market crashes. Crypto markets continued to be on edge with no clear positive driver.

All Eyes on Nonfarm Payrolls and BTC Price Structure

The focus now shifts to Friday’s Nonfarm Payrolls (NFP) report that could set the tone for the market going into the weekend. Experts believe the report will display 130,000 new jobs in May, a decline from the 177,000 seen in April.

A weak print may encourage the Fed to lower rates in July and support Bitcoin and other risky assets. As labor market softness is already showing, job openings have fallen to 7.36 million, the lowest since 2021.

The ratio of job openings to unemployed fell to 1.03, indicating a further slowdown. The data could temporarily relieve Bitcoin from selling pressure if the market reacts positively to the data.

Bitcoin technically found support at $100,436 and bounced, trading around $100,700 at press time. Strong resistance lies at $103,500 and $103,900, with momentum indicators like MACD and RSI still in bearish territory.

RSI at 38 shows oversold conditions, but a break above resistance is needed for a trend change. The $100K area is crucial in the run-up to options expiry, as a lot of open interest could guide the price action. The market is uncertain for now until the key economic indicators are released.