- Bitcoin price is struggling to reclaim the $105k support and the current market sentiment raises the prospect of an extended struggle.
Bitcoin price retested the $105k mark on Monday but slid back later in the day to trade at $104,100 at the time of writing. The coin is currently fighting headwinds brought by renewed trade tariff fears, which has seen many investors take risk averse positions. In addition, China’s move last week to ban all forms of activities involving cryptocurrencies, including mining, trading and owning, has created a bearish undercurrent.
Despite losing 4.3% in the last week, Bitcoin is still a hit with institutional investors, with Strategy leading the way. The company bought 705 BTC worth $75.1 million at a average price of $106,495 in its latest purchase, bringing its total holdings to 580,250 coins. In addition, Japan’s Metaplanet bought 1,088 Bitcoin worth $117.3 million. Meanwhile, Bitcoin’s ETFs recorded $5.25 billion worth of net inflows in May, outweighing gold ETFs, which had $1.58 billion wort of net outflows.
However, the downward pressure on Bitcoin price weighed down on its performance in the ETF market last week, ending up with $8 million in net outflows. Bitcoin’s trading volume rose by 19.7% in the last 24 hours amid the price decline, signaling rising sell-side pressure. However, BTC Open Interest contracts rose by 0.56% in the last 24 hours to $33.6 billion, and that will provide support to Bitcoin price and limit its downside.
Bitcoin Price Prediction
Bitcoin price momentum points to the downside and the sellers will likely stay in control if resistance persists at $104,800. That will likely see the first support established at $103,580. However, an extended control by the sellers will drive the action lower to test $102,410.
Conversely, breaking above $104,800 will favour the buyers to take control. With the buyers in control, the first barrier will likely be at $105,470. Action above that level will invalidate the downside narrative. Furthermore, such momentum could lead to extended gains to test the second resistance at $106,400.
