Bitcoin Price Analysis: BTC Hovers Around $105,000 As Indecisiveness Persists

Bitcoin (BTC) continues to trade around $105,000 as selling pressure and buyer exhaustion weigh on the price. The flagship’s cryptocurrency’s price action indicates indecision after its sharp retracement from its all-time high of $111,970. Momentum stalled after BTC reached this level as investors locked in their profits, leading to a decline that gradually transitioned into a sideways consolidation phase. 

BTC had dipped to a low of $103,734 at the beginning of the week before recovering and moving to current levels. The price is up over 1% during the ongoing session, trading around $105,825. 

New Whales Scoop Up Billions in Bitcoin 

Bitcoin is facing a significant pullback in recent sessions, with its price trading below key levels after surging to a new all-time high. Despite the decline, on-chain data has revealed a startling discovery. A new set of Bitcoin whales, wallets with 1000 Bitcoin aged less than six months, have been accumulating the asset at a frenetic pace. According to CryptoQuant analysts, this accumulation could indicate renewed conviction among participants for future catalysts and price jumps. 

The amount held by the new Bitcoin whales doubled from 500,000 BTC to over 1.1 million BTC between March 1 and June 4, representing an increase of over $63 billion in value. The share of Bitcoin’s total circulating supply grew from 2.5% to 5.6%, removing an amount equivalent to ten months of Bitcoin mining output from active circulation. Analysts believe new whale activity indicates a shift in the market. If these whales continue to remove BTC from circulation, it could herald a period of price compression followed by upside volatility. 

Vitalik Buterin Concedes Bitcoin Dominance in Some Areas Of Crypto 

Ethereum co-founder Vitalik Buterin has conceded that Bitcoin is ahead of Ethereum in some aspects of the crypto space. Buterin made the comments in response to users who were debating about the protocol’s strengths and what it must improve upon. Some users believe Ethereum is leading the industry in terms of censorship resistance but not transactions per second. Buterin confirmed this but stated that there are some aspects of the crypto space dominated by Bitcoin. 

“I believe Ethereum is leading in terms of CR and security. There are some aspects of this where Bitcoin is ahead (eg. less code complexity, lower rate of protocol change, higher full node count, less dependence on RPCs).”

He stated that Bitcoin was superior to Ethereum in terms of coding simplicity, fewer protocol changes, node count, and lesser dependency on services like Infura, Alchemy, or Ankr. Buterin believes Ethereum is more advanced in censorship resistance and security thanks to its flexible and evolving protocol. 

JPMorgan To Accept Bitcoin ETFs As Collateral 

JPMorgan is expanding its financing options to include spot Bitcoin ETFs, allowing its customers to use their crypto ETFs as collateral when applying for a loan. According to sources, the new offering will apply to the banking giant’s wealthy clients. Recently, the bank’s CEO, Jamie Dimon, announced it will allow its clients to buy Bitcoin. Dimon, a crypto skeptic, had stated that he would defend the people’s right to buy Bitcoin. The new service will begin with BlackRock’s iShares Bitcoin Trust ETF, the largest spot Bitcoin ETF with over $40 billion in cumulative inflows and over $70 billion in net assets. The bank could expand its offering to include other Bitcoin ETFs. 

Reports have also claimed that JPMorgan plans to add crypto holdings to the list of assets considered when financial managers assess a client’s net worth. The bank will also include crypto in the assessment of liquid assets, treating it like real estate, stocks, and motor vehicles. 

Bitcoin (BTC) Price Analysis 

Bitcoin’s (BTC) price action remained subdued as it struggled to build momentum and cross the 20-day SMA. The price briefly crossed $105,000 during the ongoing session but crashed back below it, moving to its current level of $104,770. The flagship cryptocurrency has faced significant selling pressure after reaching its all-time high as investors locked in their profits and buyer exhaustion set in. Data shows that long liquidations are stabilizing after hitting a peak of $206 million. The past 24 hours saw $200 million worth of long positions flushed as markets opened facing strong selling pressure. Market sentiment has also waned, as indicated by the Fear and Greed Index. The index peaked at 76 in May but has fallen to 57, indicating the prevalence of a neutral attitude among investors. 

Investors may be adopting a wait-and-watch approach, thanks to renewed trade tensions between the US and China. According to some analysts, BTC could slip below $100,000 if the current downtrend continues, falling as low as $92,000. However, others have stated that while BTC’s pullback is concerning, investors are still optimistic about a recovery. Crypto market sentiment remains strong. Some analysts believe BTC could surge to a new all-time high above $115,000 next month if institutional interest continues and US job data is weaker than expected. 

“In a bullish scenario, driven by strong institutional interest and ETF inflows, Bitcoin could touch $115,000 or higher by early July.”

The US Bureau of Labor Statistics will release its monthly jobs report on June 6. Job data is a crucial indicator for Bitcoin as it impacts the Federal Reserve’s decision on interest rates, which in turn, influences sentiment towards risk assets like Bitcoin. 

“A stronger-than-expected report might delay rate cuts, strengthening the dollar and possibly exerting downward pressure on Bitcoin.”

On the other hand, a softer-than-expected report could encourage the Federal Reserve to reduce interest rates sooner. 

BTC traded in positive territory last weekend, rising 0.46% on Saturday and 1.16% on Sunday to settle at $109,103. The price continued to push higher on Monday, rising to $109,453, but lost momentum on Tuesday, registering a marginal decline to slip below $109,000 and settle at $108,954. Sellers retained control on Wednesday as BTC fell over 1% to $107,834. Bearish sentiment intensified on Thursday as BTC fell 2.01%, slipping below the 20-day SMA and settling at $105,662. Selling pressure persisted on Friday as the price fell 1.61%, falling below $105,000 and settling at $104,067.

Source: TradingView

BTC recovered over the weekend, rising 0.69% on Saturday and 0.95% on Sunday to reclaim $105,000 and settle at $105,775. The price plunged to an intraday low of $103,734 as the week started on a bearish note. However, the price recovered from this level to register a marginal increase and settle at $105,903. BTC was back in the red on Tuesday, falling 0.44% to $105,435. BTC continued to decline on Wednesday, falling 0.65% to slip below $105,000 and settle at $104,755. The current session sees BTC marginally down as it struggles to reclaim $105,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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