Bitcoin’s Price Action: Navigating Key Support Levels

Bitcoin’s price currently hovers around $105,000, creating a liquidity build-up on either side of this spot price. After attempting to break through the $106,000 barrier, Bitcoin is revisiting support levels, particularly as traders focus on the crucial $100,000 mark.

Key Levels in Bitcoin Trading

Currently, Bitcoin (BTC) is still about 6% shy of its all-time high of $111,900. Market sentiment indicates that traders are wary of a significant correction throughout June, especially with the established support level at $100,000 coming into play. Following its rise above $100,000 on May 8, Bitcoin maintained this critical threshold for over three weeks, but it has not seen a retest that confirms its stability.

Michael van de Poppe, founder of MN Capital, noted that Bitcoin is oscillating around $104,300 after being rejected from $106,000. He expressed concern that BTC may need to drop further before recapturing upward momentum. His observations illustrated the importance of $100,000 on Bitcoin’s four-hour chart, declaring, “Clear rejection on #Bitcoin implying that we’re going to see lower prices before we see upwards momentum.”

Meanwhile, analyst CrypNuevo highlighted the struggles Bitcoin faces in turning the resistance at $106,000 into support, emphasizing that a potential decline to $100,000 could be in store, especially in conjunction with the 150 EMA (Exponential Moving Average).

Market Liquidity and Potential Volatility

Several market participants are also eyeing a possible downside liquidity grab, particularly around the shopping orders accumulating below the spot price. CrypNuevo pointed out that $100,000 is a significant psychological level where liquidity tends to cluster. Current data reveals that price movements have been absorbing bids around $105,000, with substantial activity positioned between the spot price and $100,000.

The latest figures from CoinGlass indicate that $170 million in liquidity is stacked around the $93,200 level, while potential resistance can be found in the $112,500 to $113,500 range. Analyst AlphaBTC noted that the concentration of liquidity suggests a likelihood of volatility, saying, “I wouldn’t be surprised if $BTC ran the lows and then rallied back up to take what’s left above.”

This environment presents both challenges and opportunities, as traders navigate the complexities of historical price levels, liquidity areas, and market psychology. As Bitcoin approaches these key points, attention remains fixed on the data forthcoming from the Federal Open Market Committee (FOMC) meeting on June 18. The anticipation of tightened monetary policy could further influence investor behavior and market dynamics.