Bitcoin Price Analysis - June 2025

Author: Alejandro Arrieche

Published: June 04, 2025

Key Points

• Bitcoin has experienced significant selling pressure following a new all-time high.
• The market may undergo a long squeeze to eliminate excess leverage in the BTC futures market.
• Potential price drop to the $90,000 - $95,000 range could be necessary to gather liquidity for the next upward movement.

Market Overview

In the past 24 hours, Bitcoin's trading volume has increased by 3%, despite a 0.7% price retreat. Long liquidations have been normalizing after peaking at $206 million in May, with nearly $200 million in long positions liquidated as the American trading session began with strong selling pressure.

Market Sentiment

The Fear and Greed Index has shown a decline from a peak of 76 in late May to 57, indicating a shift to a neutral sentiment among investors. This change is likely influenced by escalating tensions between the United States and China, with Treasury Secretary Scott Bessent noting stalled trade negotiations.

Open Interest Trends

Open interest in Bitcoin has been steadily decreasing since the recent all-time high, suggesting that traders are taking profits rather than betting on further price increases amid rising geopolitical tensions. This decline in open interest supports a bearish outlook, especially following a period of significant fear of missing out (FOMO).

Price Predictions

The daily chart indicates that Bitcoin has fallen below its short-term exponential moving averages (EMAs). A previous analysis highlighted that a clear sell signal would require a declining Relative Strength Index (RSI), which is currently the case, although a bearish crossover between the 9-day and 21-day EMAs has not yet occurred.

Support Levels

Bitcoin's recent price action has broken its bullish structure, indicating a downtrend. The price has struggled to maintain above the $107,000 level, a critical support/resistance area. The American session has pushed Bitcoin below the $105,000 level, which is now a key support level to monitor. If selling pressure persists, the next significant support level is around $103,700.

Conclusion

As Bitcoin navigates through this volatile phase, traders should keep an eye on the key support levels and market sentiment, particularly in light of external geopolitical factors that may influence price movements.