Bitcoin extended its downtrend from May 27, with bulls attempting to hold the line at the critical $104,000 support level, a threshold analysts view as pivotal in averting a deeper market correction. With risk appetite fading, the total crypto market cap dropped by over 2 percent to $3.36 trillion, revisiting early May levels. The sentiment shift was reflected in the Crypto Fear and Greed Index, which dropped to 56, signaling a move from greed to a more cautious, neutral stance. Altcoins traded largely flat, showing limited momentum as Bitcoin dominance continued to weigh on broader market activity. While a few names posted modest gains, the majority hovered near previous levels or recorded slight declines. Why is Bitcoin down today? Bitcoin’s latest drop comes amid growing macroeconomic concerns, most notably stalled trade negotiations between the United States and China. The breakdown in talks has reignited global risk aversion, prompting investors to shift away from speculative assets, such as cryptocurrencies. Geopolitical tensions in Eastern Europe added to the cautious mood, as renewed concerns over the Russia-Ukraine conflict resurfaced in market discussions. Bitcoin slipped below $104,000 at the June 2 Wall Street open, coinciding with broader market unease around the potential collapse of ongoing peace efforts. Analysts at the Kobeissi Letter noted that markets were effectively pricing out expectations of a resolution, following months of behind-the-scenes diplomacy. While former President Donald Trump had reportedly been working on a peace framework, the lack of formal communication from US officials has fueled speculation and uncertainty over the conflict’s trajectory. This risk-off sentiment was reflected in the derivatives market, where over $156 million in crypto futures positions were liquidated in the past 24 hours. According to Coinglass data, 73,552 traders were wiped out during the sell-off, with long positions accounting for the bulk of the damage at $76.39 million. Bitcoin and Ethereum bore the brunt of the derivatives washout, with ETH alone seeing $3.08 million in long liquidations. The imbalance between long and short liquidations suggests that traders were overly optimistic on a rebound, only to be caught off guard by the sharp downside move. Adding further pressure, institutional flows have also turned negative. Spot Bitcoin ETFs recorded back-to-back outflows over the past two trading sessions, with a combined drawdown of nearly $975 million. This ended a 10-day streak of inflows, raising concerns over waning institutional conviction at current price levels. With sentiment retreating and both derivatives and spot flows turning bearish, the market appears to be entering a consolidation phase. Will Bitcoin crash? Most analysts are not calling for an outright crash, but rather expect Bitcoin to enter a consolidation phase as it digests recent volatility. Trading firm QCP Capital noted that despite the recent swings, Bitcoin is still holding above 102,000 dollars, pointing to underlying support in that range. According to their latest market bulletin, volatility has compressed and risk reversals are stabilising, which often suggests quieter price action ahead. In the absence of fresh catalysts, QCP expects Bitcoin to trade within a broad range of 100,000 to 110,000 dollars over the near term. Others like Daan Crypto Trades are watching short-term patterns closely. Based on prior monthly trends, the trader believes early June moves may fade once a local reversal forms. If that scenario plays out, it could guide trading direction for the rest of the month, although the broader trend remains unclear. Daan Crypto Trades @DaanCrypto · Follow $BTC My plan for the month ahead 👇ith eyes on this strong monthly statistic, I am looking for either of these two scenarios. Drawings are a rough estimate, obviously the moves can go lower or higher, it’s more about the idea than the precise levels for now.I think there’s a 1:32 AM · Jun 2, 2025 346 Reply Copy link Read 74 replies Historical data also adds some caution. June has been a bearish month for Bitcoin in four of the past six years, and as such, seasonal weakness could persist if macro pressures stay in focus. Traders are also watching key economic data from the US this week, particularly unemployment figures and any signals from the Federal Reserve. All eyes will be on Fed Chair Jerome Powell’s opening remarks due later today. The strength of the labour market is being reassessed after recent data hinted at softening, raising questions about the Fed’s ability to keep rates elevated. Although inflation appears to be cooling, as seen in the latest PCE print, the Fed has so far held firm. President Trump’s recent meeting with Powell didn’t move market expectations either, with CME FedWatch data showing traders still do not anticipate a rate cut before September. That said, some analysts see a potential tailwind for Bitcoin in the weakening US dollar. The Dollar Index has dropped back below 99, reversing its earlier gains. According to experts at Mosaic Asset Management, if dollar weakness deepens, it could signal broader concerns over the US fiscal outlook, a setup that could benefit assets like gold and Bitcoin over the longer term. At the moment, some Bitcoin technicals point to a deeper correction. The cryptocurrency has broken below the lower boundary of a bear flag pattern at 104,800 dollars on the four-hour chart, confirming a bearish continuation setup. This breakdown opens the door to a potential move toward the pattern’s projected target of 97,690 dollars. BTC/USD 4-hour price chart. Source: TradingView. Supporting the bearish case, BTC’s Relative Strength Index remains weak, with the RSI hovering around 44. This suggests that selling pressure is still dominant, leaving Bitcoin vulnerable to further downside unless a strong reversal catalyst emerges. Nevertheless, not all market watchers are leaning bearish, with some viewing the latest pullback as a necessary reset within a broader uptrend. According to Merlijn The Trader, a golden cross has recently formed on Bitcoin’s daily chart, mirroring a similar setup seen late last year. At the time, a 10 percent correction was followed by a sharp 63 percent rally. If that pattern repeats, Merlijn suggests Bitcoin could be primed for a breakout move exceeding 60 percent in the coming weeks. Merlijn The Trader @MerlijnTrader · Follow EVERYONE WANTS THE PUMP.But no one wants the dip that starts it. $BTC just flashed a GOLDEN CROSS same as last time:-10% correction+63% breakoutIf history repeats, a +60% move is coming. 2:30 PM · Jun 1, 2025 1.6K Reply Copy link Read 100 replies Others like Crypto Caesar believe the broader bull run is yet to lose steam. See below. Crypto Caesar @CryptoCaesarTA · Follow $BTC – #Bitcoin is looking ready for the last big leg up. In my opinion, we still have a few good months left in this bull market. 5:40 PM · Jun 1, 2025 593 Reply Copy link Read 39 replies At press time, Bitcoin was trading at $104,394, down 0.3% in the past 24 hours. Altcoin market Over the past 24 hours, the altcoin market cap fell 1.6% to $1.23 trillion when writing, while the Altcoin Season Index showed a reading of 22, confirming a Bitcoin-dominated market. While Ethereum (ETH), the leading altcoin by market cap, still managed to gain 1.18% over the day, trading at $2,536 with a market cap of nearly $306 billion while other large-cap altcoins like Solana (SOL), Tron (TRX), Dogecoin (DOGE) and Sui (SUI) have experienced slight losses ranging between 0-1%. The leading gainer among the top 99 altcoins was Monero (XMR), which managed to secure double-digit gains of 11.3% as of press time, while Kaia (KAIA) and Sky (SKY) posted gains of 7.5% and 4.3%, respectively. Source: CoinMarketCap Monero’s price surge appears linked to increased demand after hackers reportedly used over $335 million in stolen Bitcoin to acquire and move funds through its network, likely contributing to the sharp appreciation. KAIA saw a brief rally following the announcement of a 2 million dollar grant program, which seemed to have reignited interest among traders and long-term holders. Meanwhile, SKY managed to lock on to profits after its cofounder announced that SKY staking is going live today, with an expected yearly return of 25% based on the current price and staking participation. The post Crypto prices today: Bitcoin at risk below $104K, XMR, KAIA lead daily gains appeared first on Invezz
