Bitcoin Faces Intense Pressure as It Approaches Key Psychological Support Level – Market Analysis – 2025-06-06

Market Analysis

**Introduction:**
Recent news and escalating global political tensions have exerted downward pressure on Bitcoin’s price. In particular, the ongoing friction between former U.S. President Donald Trump and Elon Musk has sparked concern across the market. Additionally, reports of Russia’s military actions in Ukraine are negatively impacting investor sentiment, contributing to increased price volatility and market instability.

**Analysis:**
Over the past five days, Bitcoin’s price has declined from approximately 104,591 to close near 101,508, indicating a clear downward trend. The 7-day Relative Strength Index (RSI) has dropped to 26.43, approaching the oversold territory, which reflects heightened selling pressure in the market. Similarly, the 14-day Money Flow Index (MFI) at 28.13 signals reduced liquidity and a cautious approach among investors. The MACD indicator also shows a weakening momentum, suggesting the possibility of further price declines. Notably, trading volume surged significantly on June 5th, reaching 3,963,295 trades, which underscores increased selling activity.

Price fluctuations within the Bollinger Bands have intensified. While the 21-day moving average hovers around 106,395, the price has fallen toward the lower band near 101,528, illustrating elevated volatility and Bitcoin’s search for nearby support. The Hull Moving Average (HMA) for 7 days has declined to 103,144, signaling short-term weakness. The 14- and 21-day moving averages are also trending downward, confirming mounting pressure in the medium term.

A key psychological support level lies at 100,000, currently reinforced by a range between 100,119 and 101,420. Should this support break, the next significant support zone is between 96,945 and 90,056, potentially pushing the market into further decline. Resistance is observed between 104,103 and 105,500, where recent attempts to break through have failed. The psychological resistance at 110,000 remains a considerable barrier, unlikely to be breached in the near term.

From a sentiment perspective, the Fear and Greed Index stands at 57, indicating moderate fear—an improvement but not yet a fully stable environment. The funding rate is minimal at 0.000052, reflecting market equilibrium, although open interest has dropped by over 2%, suggesting that investors are reluctant to take on additional risk. The ongoing tensions between Trump and Musk, combined with the Russia-Ukraine conflict, continue to weigh heavily on investor confidence, placing pressure not only on Bitcoin but the broader cryptocurrency market.

In summary, Bitcoin is currently at a critical juncture with clear signs of short- and medium-term pressure. However, the presence of strong psychological support levels paired with a balanced funding rate indicates that the market has not collapsed. A drop below 100,000 could trigger further declines, but if this support holds, it may serve as a foundation for a rebound. Vigilance remains essential given the influence of global political and financial developments, which will continue to play a pivotal role in shaping the cryptocurrency market’s trajectory.

Data Summary

• 1. Time:
  2025-06-06 – 00:00 UTC
• 2. Prices:
  Open: 104696.86000000
  High: 105909.71000000
  Low: 100372.26000000
  Close: 101508.68000000
• 3. Last 5 days’ closing prices:
  2025-06-01: 105642.93000000
  2025-06-02: 105857.99000000
  2025-06-03: 105376.89000000
  2025-06-04: 104696.86000000
  2025-06-05: 101508.68000000
• 4. Volume:
  BTC: 22321.5015
  USD: $2301567892.5305
• 5. Number of trades:
  3963295
• 6. Indicators:
  RSI: 26.4300
  MFI: 28.1300
  BB Upper: 111261.62000000
  BB Lower: 101528.69000000
  MACD: 919.69000000
  Signal: 1979.37000000
  Histogram: -1059.68000000
• 7. Moving Averages:
  SMA:
  7=104522.96000000
  14=106249.26000000
  21=106395.16000000
  30=105355.22000000
  50=100210.02000000
  100=92211.96000000
  200=95115.14000000

  EMA:

  7=104543.83000000
  14=105233.45000000
  21=104856.50000000
  30=103684.14000000
  50=100827.02000000
  100=96638.81000000
  200=91082.91000000

  HMA:

  7=103144.16000000
  14=103735.52000000
  21=104197.18000000
  30=106199.73000000
  50=109371.69000000
  100=110165.66000000
  200=97107.98000000
• 8. Supports:
  S1: 101420.00000000 – 100119.04000000
  S2: 96945.63000000 – 90056.17000000
  S3: 89855.99000000 – 87325.59000000
  S4: 84474.7 – 83949.5
• 9. Resistances:
  R1: 104103.72000000 – 105500.00000000
  R2: 105857.99000000 – 106457.44000000
  R3: 109434.79000000 – 110797.38000000
• 10. Psychological Support:
  100000.00000000
• 11. Psychological Resistance:
  110000.00000000
• 12. Funding Rate:
  0.0052%
• 13. Open Interest:
  80790.8980
• 14. Fear & Greed Index:
  57 (Greed)

Disclaimer: This market analysis is generated by AI based on historical BTC data and sentiment indicators. Use it as a reference, not financial advice.