Can Bitcoin Price Maintain Bullish Trend In June Despite Recent Pullback?

Bitcoin

Can Bitcoin Price Maintain Bullish Trend In June Despite Recent Pullback？

Bitcoin price moved in an ascending price channel during its recovery phase since it bottomed out in April. However, its bearish performance last week resulted in break below from the same channel, signaling a momentum breakdown.

Bitcoin price action dipped by over 6% from its top to bottom in the last week of May. It found support just below the $104,000 price level in the last 3 days which was also characterized by a retest of the 50% RSI level.

Source: TradingView

The wave of sell pressure triggered a heavy liquidation phase during the weekend, with ln liquidations surging past $200 million on Friday. However, liquidations have since dropped, indicating that lower appetite for leverage.

In comparison, only $9.6 million worth of long liquidations were observed in the last 24 hours. This was roughly 3 times more than the short liquidations. This signaled that the level of leverage has been declining, which indicates fewer opportunities for leverage liquidations.

Can Bitcoin demand make a strong comeback in June？

Now that Bitcoin has broken through the latest ascending range, the probability of extended downside remained quite high. The next major Bitcoin support range was within the $102,000 price level. However, that outcome warranted an assessment of BTC demand at its recent price levels.

Institutional demand cooled down considerably in the last week of May. This was particularly evident with institutional outflows during the week which turned negative on Thursday and Friday.

Whale flows also took a hit during the last week of May. However, some whales have been taking advantage of the recent market outcomes. For example, some whales have been taking advantage of recent market discounts. One particular whale recently purchased more than 354 BTC on Binance, valued at more than $56 million.

Source: X

Net spot flows across the 3 biggest exchanges (Binance, Coinbase and OKX) yielded about $10.86 million in spot flows in the last 24 hours, giving a rough idea of the bearish market conditions at the time.

The spot flows were predominantly negative during the week but notably cooled down during the weekend. This was consistent with the rising macro-economic uncertainty which may explain why demand has been struggling to make a comeback.

What to expect from Bitcoin price in June？

High levels of volatility were expected after Bitcoin price surged to new high and this includes significant pullbacks. This included the possibility that the cryptocurrency could potentially slide below $100,000.

As far as potential outcomes were concerned, some analysts believe that it will likely continue to track global liquidity. One analyst noted that the king of the cryptocurrencies has been following the movements of the M2 money supply.

Source: X

This suggests that BTC has been absorbing a substantial amount of the incoming liquidity. In addition, Bitcoin concluded May with its longest streak above the $100,000 price level. This streak confirmed high levels of investor confidence during the month, which was also characterized by weak levels of sell pressure.

In other words, more investors have been holding on to BTC above $100,000, highlighting a shift in favor of long term bullish expectations. But will investors extend the same courtesy in June？

The outcome depends on various factors. The macro-economic situation may still hold hostage investor confidence as was the case in March and April. Especially if President Trump reignites the tariff war as previously hinted.

Investors took advantage of discounted prices last time Bitcoin crashed. A similar outcome would likely play out in case of another major pullback. This is because growing institutional and state interest in BTC has been boosting investor confidence.

In the meantime, the macro outlook still suggested that we might witness higher levels of economic disruption compared to May. Such a scenario is expected to impact investor sentiment.