Bitcoin’s price action has been anything but boring this June. After a sharp drop below $101,000—sparked by high-profile tensions between US President Donald Trump and Elon Musk—BTC quickly rebounded, climbing above $105,000 before settling into a sideways pattern. This volatility has left traders and investors wondering: is this just a healthy pullback, or the start of a deeper correction?
What’s Fueling Bitcoin’s Recent Moves?
According to technical analysts, the recent rebound wasn’t random. After reaching a new all-time high near $112,000 in late May, Bitcoin corrected by about 10%, dipping into the $100,000 range. Several key factors contributed to the bounce:
• Technical Gaps and Volume Imbalances: The market filled inefficiencies left on the chart, known as Fair Value Gaps (FVG), which often act as magnets for price action.
• Liquidity Sweep: As Bitcoin slid, it triggered stop-losses from long positions, creating a surge of liquidity that larger players used to their advantage, fueling the rebound.
• Short Squeeze: Many traders bet on further declines after the initial bounce. When prices started rising, these short sellers were forced to buy back in, accelerating the rally.
What’s Next for Bitcoin?
Crypto analyst KillaXBT outlines three possible scenarios for Bitcoin’s next move:
• Bullish Breakout: If Bitcoin can break and hold above the $104,800–$106,000 resistance zone (which aligns with key Fibonacci retracement levels), it could trigger another wave of short covering and push prices higher.
• Range Retest: If BTC is rejected at this resistance, a retest of the $100,000 support is likely.
• Deeper Correction: A break below $100,000 could see Bitcoin testing support around $97,000.
At the time of writing, Bitcoin is trading at $105,600, up 1,16% in the last 24 hours.
Broader Market Context
Despite the recent turbulence, the long-term outlook for Bitcoin remains positive. Analysts from Finance Magnates and Changelly project that Bitcoin could reach $120,000–$125,000 by the end of June, with some even eyeing $150,000 or more by year-end. However, short-term corrections and volatility are expected as the market digests new highs and shifting macroeconomic conditions 1 2 3.
What Should Crypto Investors Watch?
• Key Resistance Levels: Watch the $104,800–$106,000 zone for signs of a breakout or rejection.
• Support at $100,000: This psychological level is crucial; a sustained break below could signal a deeper correction.
• Market Sentiment: Keep an eye on institutional flows and macroeconomic news, as these can quickly shift momentum.
For those new to crypto, understanding these dynamics can help you navigate the market’s ups and downs. Whether you’re holding for the long term or trading the swings, staying informed is your best strategy.
