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Bitcoin Crypto

Bitcoin Stands Pat at $107K with Sizzling PCE Inflation and Slumping Futures Trading

Bitcoin has stayed steady around the $107,000 level despite the hotter-than-anticipated U.S. core PCE inflation figure in May to 2.7% and potentially impacting the Federal Reserve’s consideration of rate cuts. Market reaction has been subdued with Bitcoin re-consolidating between the $100,000–$110,000 levels as spot and futures trading volumes declined. Analysts indicate that the current dip is indicative of diminishing speculative desire and decreased market momentum, while the wider cryptocurrency market remains soft. Nevertheless, Bitcoin continues to be in a bullish setup so long as it retains major support above $93,000. KEY LOOKOUTS • Core PCE inflation advanced to 2.7% in May, beating expectations and possibly postponing any Federal Reserve rate reductions. • Volumes in spot and futures trading still fall, suggesting fewer participants in the market and lower speculative appetite. • Bitcoin needs to stay above the critical $93,000–$100,000 support area if it is to continue its uptrend and bypass further correction. • Traders are shifting to low-risk options such as futures and spot market arbitrage, pointing to a more risk-averse environment. Bitcoin is trading firmly at levels close to $107,000 in spite of better-than-anticipated U.S. core PCE inflation readings, up to 2.7% in May, that are likely to set back the Federal Reserve’s planned rate cuts. Though the overall crypto market exhibits marginal weakness, Bitcoin has held up well in the $100,000-$110,000 region. However, weakening spot and futures volumes suggest decreased speculative interest and a more conservative market mood. Experts observe that this cool-off phase comes after a wave of profit-taking and may indicate temporary consolidation, as long as Bitcoin remains above the key support area between $93,000 and $100,000. Bitcoin remains firm around $107,000 despite hotter-than-anticipated U.S. core PCE inflation readings, which might stall Fed rate cuts. Trading volumes in both spot and futures have softened, indicating diminished investor appetite and a subdued market tone. • Bitcoin trades at around $107,000 after the publication of above-expectations core PCE inflation figures for May (2.7%). • Inflation surprise may delay the Federal Reserve’s intentions to cut interest rates. • Bitcoin is in consolidation, trading between the $100,000 and $110,000 levels in a general slowdown in the broader market. • Spot trading volume fell from the May high of $76 billion to $52 billion, showing cooling activity. • Futures volumes and funding rates have also dipped, indicating decreased speculative appetite. • According to Glassnode, the market is in a “cool-down phase” following recent profit-taking waves. • Support levels between $93,000 and $100,000 are vital to sustaining the bullish trend. Bitcoin remains relatively immune to the recent U.S. economic data, holding its ground near $107,000 in spite of increasing fears about inflation. The underlying Personal Consumption Expenditure (PCE) index, a closely tracked indicator by the Federal Reserve, increased to 2.7% in May, modestly better than expected. This goes some way to fueling speculation that the Fed could delay any future interest rate reductions. That said, Bitcoin has remained steady, implying that deeper macro pressures have yet to drive meaningful responses from crypto traders. BITCOIN DAILY PRICE CHART SOURCE: TradingView The market, though, is cooling. Activity on both spot and futures markets has tailed off, with volumes significantly lower than highs. Investor sentiment also seems more guarded, with participants being more cautious after a strong round of profit-taking early this year. While excitement might have cooled, Bitcoin’s current price action is illustrating a period of consolidation and stability, with traders choosing to watch rather than act aggressively. TECHNICAL ANALYSIS Bitcoin is still consolidating in a narrow band between $100,000 and $110,000, which indicates uncertainty on the market. Recent bullish surges notwithstanding, momentum indicators are pointing to a slowdown, as dwindling volume and lower futures interest indicate declining buying pressure. The major support area remains between $93,000 and $100,000, which has always been magnets for good investor activity. So long as Bitcoin remains above this range, the larger upside trend continues to hold good; however, a fall below it might lead to an even steeper correction caused by higher selling pressure from those holding positions in this range. FORECAST If Bitcoin holds its support above the $100,000 level and general macroeconomic conditions become more settled, the asset may experience another push toward the $110,000–$115,000 zone. A pickup in trading volume, enhanced investor confidence, or a dovish turn by the Federal Reserve—especially if inflation begins to moderate—will also restart the bullish energy. Moreover, any significant institutional capital inflows or favorable regulatory news will serve as the catalyst for another leg higher in Bitcoin’s current bull cycle. Conversely, a hotter-than-expected PCE report could delay Fed rate cuts as well as fortify the US Dollar and weigh on gold prices. Then, in this instance, gold can struggle to remain above $3,300 and may follow through with losses to the next support levels around $3,245 and $3,200. A clean break below $3,200 may lead to further declines toward $3,175, especially if risk appetite continues to improve and safe-haven demand continues to weaken.

Bitcoin Crypto

Bitcoin Resists Below $81K: Long-Term Investors Indicate Market Strength Amidst Liquidity Downturn

In spite of a reduction in on-chain and futures market liquidity, Bitcoin is holding firm above the $81,000 level, indicating that the market has not yet reached a bearish trend. As per Glassnode’s recent report, although short-term holders have accumulated over $7 billion in extended losses—the longest drawdown duration in the present cycle—long-term holders are still sitting on their gains, indicating sustained faith in Bitcoin’s long-term prospects. With less trading appetite, decreased exchange inflows, and a sharp decline in futures open interest, the market is seeing a short-term contraction instead of an outright downtrend, indicating the potential for another rally in the later part of this year. KEY LOOKOUTS • On-chain as well as futures market liquidity has fallen substantially, with Bitcoin exchange inflows decreasing more than 54% and futures open interest falling by 35%, indicating decreased market participation. • Short-term investors have incurred over $7 billion of losses, representing the longest drawdown in this cycle, which is a sign of capitulation by new investors. • Even in the case of market corrections, long-term investors are still holding onto gains and have not indicated any sign of bulk profit-taking—a good indicator that the market has not moved into a bearish category. • Bitcoin continues in its consolidation phase of $80,000–$83,000 with extreme volatility based on diminished liquidity but without a visible bearish reversal in sight. The market behavior of Bitcoin today gives us a confusing yet optimistic scenario. Though on-chain activity as well as futures markets have shrunk significantly in liquidity, with exchange inflows and open interest plummeting sharply, Bitcoin is still trading firmly above the $81,000 threshold. The pressure is largely being taken in by short-term holders who have experienced more than $7 billion in persistent losses—pointing towards a long stretch of capitulation by newer investors. Long-term holders, though, continue to be unruffled, retaining their gains and hinting no mass selling. This resilience demonstrates that even while in the short-term there will be volatility and little fresh influxes of capital, the market as yet hasn’t entered the phase of the bear and even possible bullish runup is ahead of us. Bitcoin is steady at over $81,000 even as liquidity and futures market activity plummeted sharply. Although short-term holders are suffering significant losses, long-term holders are still sitting on gains, indicating that the market has not yet entered a bearish trend. • Bitcoin is still above $81,000, even with lower on-chain and futures market liquidity. • On-chain exchange inflows have fallen more than 54%, indicating weaker market activity and less trading appetite. • Open interest in futures has decreased by 35%, reflecting diminished speculative interest and capital flow. • Short-term holders have lost $7 billion, which is the longest loss-taking period in this cycle of the market. • Hot Supply (less than a week of BTC being held) has decreased by more than 50%, reflecting less short-term trading activity. • Long-term holders still hold onto gains, reflecting sustained confidence and no indication of widespread sell-offs. • Data from Glassnode indicates the market is consolidating and not entering a bear cycle, with potential for future bull action. Bitcoin remains strong in the market as it maintains a strong position above the $81,000 level. Regardless of continuing fluctuations in trading activity, there is no clear indication that the market is in a downtrend. One of the most heartening indicators is the faith demonstrated by long-term holders, as they continue to hold assets and profits. Their consistent action portrays belief in Bitcoin’s long-term future despite periodic sluggish movement in the market. BITCOIN Daily Price Chart Chart Source: TradingView On the other hand, newer investors seem to be facing more pressure, leading to some exits from the market. However, this hasn’t significantly affected the overall market sentiment. The absence of large sell-offs from experienced holders suggests that confidence in Bitcoin remains strong. Instead of seeing this as a downturn, the current situation can be viewed as a phase of calm before the next big move, with the market still showing signs of healthy consolidation. TECHNICAL ANALYSIS Bitcoin is in the process of consolidating around the $80,000 to $83,000 levels, which reflects a period of stabilization of the market following recent instability. The lateral movement reflects an accumulation phase during which buyers and sellers are striking a temporary balance. The failure to experience a significant breakout or breakdown indicates that the market awaits a catalyst that will determine the next direction of the market. Critical resistance and support points within this range are being monitored, as a clean breakout above or below either level would indicate a possible trend reversal in the near future or in weeks to come. FORECAST Bitcoin continues to have good upside potential if sentiment in the markets improves and new capital starts entering the system. A penetration above the $83,000 resistance level could be followed by a fresh rally to its highs. If long-term investors remain confident and new buyers return to the market, Bitcoin can regain its momentum and move towards higher levels in the next few months. Favorable macroeconomic conditions, institutional demand, or a change in market confidence can also act as triggers for the next leg up. On the negative side, if liquidity continues to tighten and investor appetite remains weak, Bitcoin can come under more pressure. A fall below the key support level of $80,000 could see short-term panic selling, particularly from newer investors. This may result in an interim fall before the market stabilizes once more. But until long-term holders start selling in large quantities, a severe bearish period is unlikely, even if small corrections are experienced along the way.

Bitcoin Crypto

Bitcoin Price Forecast: BTC Grapples with Multi-Month Low Volatility in the Face of FTX Repayments and Market Volatility

Bitcoin price has been ranging between $94,000 and $100,000 over the last two weeks, with volatility reaching multi-month lows, raising the specter of potential liquidation cascades. The recent slide to $93,388 was precipitated by FTX repayments, as the bankrupt exchange started reimbursing clients with account balances below $50,000. A K33 Research report points out that trading volumes, yields, options premiums, and ETF flows have fallen to levels last witnessed prior to the US Presidential election, indicating a risk-averse market sentiment. As Bitcoin grapples with breaking out of its range, analysts caution that a clear move below $94,000 has the potential to drive prices to the psychological $90,000 level, while a breakout above $100,000 could propel a retest of its January highs. Traders are still undecided, with technical indicators reflecting consolidation and indecision in BTC’s direction. KEY LOOKOUTS • A strong break below $94,000 may lead to a fall to $90,000, while a break above $100,000 might propel a bullish run. • Ongoing customer refunds, amounting to as much as $16.5 billion, may impact Bitcoin’s liquidity and sentiment in the weeks ahead. • Low volatility of BTC is a cause for concern of resultant cascades of liquidations, with speculators waiting for a trigger to a large price shift. • RSI at 42 and MACD convergence indicate consolidation, with speculators looking for a decisive directional breakout in the trend of Bitcoin’s prices. The price of Bitcoin is still in narrow consolidation at $94,000 to $100,000 levels, with volatility at multi-month lows, keeping speculators in the dark. The recent fall to $93,388 was prompted by FTX repayments as the exchange started to reimburse clients, impacting market liquidity. A report by K33 Research points to decreasing trading volumes, yields, and ETF flows as indicative of a risk-averse market sentiment. If Bitcoin drops below $94,000, it may test the psychological $90,000 support level, while a break above $100,000 can result in a retest of January highs. With technical signals indicating indecisiveness, traders are waiting for a catalyst for a clear price direction. Bitcoin is range-trading between $94,000 and $100,000 with volatility at multi-month lows, sparking fears of liquidation risks. FTX repayments have affected market liquidity, with traders waiting for a breakout. A fall below $94,000 may drive BTC to $90,000, while breaking above $100,000 might give rise to a bullish rally. • BTC has been range-bound between $94,000 and $100,000 over the last two weeks, failing to break its range. • The recent price drop was spurred by FTX starting repayments, affecting market liquidity and sentiment among traders. • BTC’s volatility has come down to multi-month lows, which is of concern regarding the possibility of liquidation cascades in case a significant move takes place. • The RSI at 42 and MACD convergence suggest there is no distinct momentum, representing uncertainty in the market. • A breakdown below $94,000 can send BTC towards $90,000, and a breakout above $100,000 can induce a rally. • Slumping trading volumes, ETF flows, and yields mean the traders are holding out for a clear directional move. • There is no immediate bullish catalyst in the offing, so BTC’s next big move will rely on external market events. Bitcoin’s market activity has tempered noticeably, with volatility falling to multi-month lows, reflecting a risk-averse trading climate. One of the influencing factors in the market is recent FTX repayments, wherein the exchange has initiated repayment of customers who had claims worth less than $50,000, and higher repayment amounts are to be initiated shortly. This has brought liquidity changes, which have resulted in shifting trader sentiment. Furthermore, a K33 Research report suggests that volumes of trading, ETF flows, and yields have fallen to their lowest level since prior to the previous U.S. Presidential election, an indication of less market participation and skepticism regarding Bitcoin’s next big move. BITCOIN Daily Price Chart TradingView Prepared by ELLYANA The current market stage is marked by indecisiveness, as investors wait for clear indications before making big moves. With moderate leverage in the market, the possibility of instant large-scale liquidations is still low, but the absence of strong momentum indicates that traders are following a wait-and-watch strategy. Market sentiment is still guarded, and there are no imminent drivers for significant price action. The medium- to long-term direction of Bitcoin is still subject to macroeconomic conditions, regulatory changes, and institutional investment, all of which will have their say in the next wave of market action. TECHNICAL ANALYSIS Technical charts show that Bitcoin is in consolidation, with no obvious momentum to break out. The Relative Strength Index (RSI) is around 42, indicating neutral to weakly bearish sentiment since it cannot break above the 50 level. The Moving Average Convergence Divergence (MACD) lines are still tightly entwined, indicating uncertainty among traders. The price has been ranging within a tight band, with support and resistance levels controlling short-term actions. Also, CME futures premiums have fallen below 5%, a historically important level that tends to precede changes in market trends. With the current configuration, traders are watching closely for any breakout above or below the consolidation range, which may determine the next major move for Bitcoin. FORECAST If Bitcoin is able to break above the $100,000 resistance level, it may initiate a new bullish momentum, drawing fresh buying interest. A break above this range could lead to a retest of its January high at $106,012, possibly marking the beginning of a more sustained uptrend. Optimism in the market, institutional inflows, and other general economic drivers like regulatory clarity or ETF-based demand might propel this rally further. Historically, Bitcoin has fared well in more robust basis regimes, so an improvement in trading volume and investor sentiment could keep the momentum on the upside. On the negative side, if Bitcoin cannot sustain the $94,000 support level, it may drop further towards the psychologically important $90,000 level. A breakdown below this level could cause stop-loss selling and intensify selling pressure, resulting in further downward movement. Moreover, low volatility and diminishing trading activity mean that a precipitous