The crypto market is down again today. After the total cryptocurrency market capitalization saw a moderate rally yesterday, climbing to $3.31 trillion — the correction was steep on Wednesday, with the total market capitalization dropping by $68.48 billion, currently at a total of $3.24 trillion.
Currencies like Bitcoin and Ethereum have about broken even on June 4th, losing 0.5% and gaining 0.5% in the day, respectively. Meanwhile, other altcoins like XRP, Dogecoin, and Cardano have seen bigger losses of up to 2.8% over the last 24 hours.
Bitcoin Ranging Phase
Meanwhile, Bitcoin continued to range around the $105K zone. The world’s largest cryptocurrency is down by around 0.6% on the day, currently trading at $104,751. After entering a massive rally on April 9, bull strength appears to be finally fading. Over the last 12 days, Bitcoin’s daily trading volume has only surpassed $100B in four of these days — indicating that liquidity is starting to dry up.
The Relative Strength Index (RSI) indicator confirms that buyer strength has started to fade. Since May 22, Bitcoin has gone from ‘overbought’ levels to the more neutral zone it is at today.
So, What Gives?
A massive influx of profit taking likely took an effect on Bitcoin’s ability to continue its ascension. According to GlassNode, Bitcoin investors locked in $1.5 billion in realized profits—an unusually high amount in such a short timeframe.
Meanwhile, Bitcoin ETFs have also taken a hit. From May 29 to June 2nd —the collective of Bitcoin ETFs have seen $1.23 billion in outflows. Although ETFs like IBIT or ARKB are financial products, they are still directly linked to $BTC. When investors pull their money from these funds, ETF managers often sell off Bitcoin holdings to make ends meet.
On a better note, Bitcoin ETFs registered inflows today, adding $375 million in $BTC to the market.
So What to Make of It?
The bearish MACD crossover on May 24 has played a key role in Bitcoin’s current price behavior. Historically, such crossovers indicate a shift in momentum, often leading to price corrections or consolidation periods. Since the signal emerged, Bitcoin has struggled to break above $105K, remaining locked in a tight range-bound phase.
The reaction has been sharp but contained, with BTC failing to regain bullish momentum, suggesting that sellers still have control while buyers hesitate to step in with strong volume.
Bearish Scenario:
If Bitcoin fails to hold above $104K and volume continues to decline, we could see a deeper correction toward the psychological $100K support level.
For confirmation, traders will be watching for:
- Break of $104K → If sellers push below this level, BTC could fall toward $100K–$101K as the next major support zone.
- Increasing sell volume → A spike in liquidation events could accelerate downside movement, bringing BTC into a stronger correction phase.
Bullish Scenario:
If buyers step in and volume picks up, Bitcoin could attempt to invalidate the bearish setup and push back toward key resistance levels. Despite the MACD crossover, BTC has not seen a major sell-off, which could mean buyers are still accumulating within this range before a push.
For upside confirmation, traders will be watching for:
- Break above $105K with strong volume → A reclaim of this level could open the door for a retest of $108K–$110K in the short term.
- RSI climbing above 65 → A shift from neutral into bullish territory would indicate renewed buying strength.
- ETF inflows continuing → Today’s $375M in inflows could be an early sign of institutions re-entering the market, which could support Bitcoin’s next rally.
Of course, news remains one of the biggest momentum drivers in the Bitcoin market. Staying tuned to our reports can give you an edge in catching trends early. Also, if you’re looking for a new exchange, WEEX is currently offering early users a chance to claim up to 100 USDT just for signing up and verifying — no strings attached.
