Bitcoin Faces Potential Bearish Turn Within the Week

Investors and traders have centred their attention on Bitcoin, the world’s main cryptocurrency, as its price is currently $104,000. Although Bitcoin reached an all-time high of $111,980 in late May, current trends in the market hint that it could be about to fall in value in the coming week. A decline in the market may result from technical signs, taking profits and various macro-economic factors that are making traders review their standpoints.

A Stellar Performance Reaches Imbalance

Bitcoin’s movement beyond six figures was a significant moment that grantee it top performer status in 2025. This year, BTC surged from $74,000 to about $111,980 thanks to more organisations buying it, positive regulations and a lively market. Although Bitcoin reached a new high, it has since struggled to go above the key resistance zones of $106,000–$112,000 because of multiple failed attempts, pointing to a lack of energy from buyers. Currently, Bitcoin is valued at $104,696 which is 0.7% less compared to yesterday due to a more conservative market atmosphere.

Some tech analysts are pointing at different technical signs that suggest the market might pause. Currently, the Relative Strength Index (RSI) stands at 53.45 and is moving down which indicates the stock’s upward activity is lessening. The appearance of a bearish divergence on MACD confirms that the trend is still turning bearish for a period of time. On four-hour charts, Bitcoin has moved to form both lower highs and lower lows which has usually come ahead of a bigger pullback.

Profit-Taking Intensifies

Many people taking profits in the financial markets is one of the main reasons Bitcoin has fallen. A firm called Glassnode has reported that more Bitcoin investors cashed out their profits as the digital currency surged earlier this week. Institutional investors were clearly taking profits in late May which can be seen by the big ETF sell-off in the last trading days of the month. this movement points out that those holding Bitcoin long term are choosing to sell which can bring down Bitcoin’s price.

A level of $100,000 which used to be tough to break, has now become an important support for the market. If this level is broken by the market, analysts think that it could cause many more sell-offs, possibly sending the price of Bitcoin to $96,000 or $100,000. A recent analysis by U.Today mentions that if Bitcoin drops below $102,126, we may witness it approaching the $100,000 level soon.

Traders tracking the $103,000 to $106,000 zone are saying they expect to see Bitcoin recover or potentially falter soon.

Macroeconomic Clouds Loom

On top of other issues, uncertain conditions in the world economy are limiting Bitcoin’s growth. Latest developments such as problematic trade negotiations between the US and China and a ruling that halted proposed tariffs, have caused instability in the markets. Because Bitcoin is speculative in nature, it is easily affected by changes in investor mindsets, even though it is not linked to trade policies.

Type historically, the price of cryptocurrency has mirrored the performance of technology stocks, since both are reacting to geopolitical stress. Moreover, the chances of the US dollar getting weaker and reminders from companies like BlackRock that quantum computing dangers affect Bitcoin’s safety have unsettled the market.

As tensions between Russia and Ukraine have appeared again, Bitcoin’s price has gone down by 8% from its peak. Traders are currently putting their money in safe assets following the latest events, a market analyst explained at Cointelegraph and without another strong catalyst, trading could head sideways or lower in June.

In the futures market, the level of open interest hasn’t gone up, showing that people are less sure about where Bitcoin will go in the short term.

Institutional Confidence vs. Short-Term Risks

Some bad signals have not stopped institutions from showing strong interest in Bitcoin. MicroStrategy and Metaplanet have kept buying Bitcoin and just recently, Metaplanet added 1,088 BTC to its wealth, bringing its total stack to 8,888 BTC. Lately, $432 million has flowed into the market, proving that investors are confident about Bitcoin in the long term.

But if Bitcoin’s price drops a lot, these strategies might meet problems, because half of corporate treasuries would lose money below the $90,000 point, according to Standard Chartered.

Saifedean Ammous, writing The Bitcoin Standard, pointed out that the recent prices indicate a wobbly position for Bitcoin. He emphasised that, according to history, there is a rise in value 12–18 months after the block subsidy halving and the latest halving will happen in April 2024. As a result, the market might be in a tough position where a major correction, close to 80%, may take place if history follows the same pattern.

What are the important things happening in the upcoming week?

Analysts are currently monitoring main levels to figure out Bitcoin’s direction. A fall below $103,000 could cancel out the inverse head and shoulders pattern from the hourly charts and raise the possibility of BTC reaching the levels of $101,000 to $102,000. should Bitcoin quickly surge above $106,000, backed by significant volume, it could create a fresh rally that takes Bitcoin to $110,000 or above.

According to Doctor Profit, whose predictions have been accurate in the past, Bitcoin need to recover $108,000 soon as missing that level might result in a deeper correction.

There is mixed news in on-chain analysis. As reported by Sygnum Bank, Bitcoin’s quantity is getting smaller but demand is dropping recently. Bitcoin’s 30-day demand reached around 229,000 BTC on May 28 which was a bit lower than the peak demand seen at the market high in December 2024. The reduced interest in buying stocks might limit any further gains for the near future.

Handling and coping with unpredictable changes

The next week promises to be very important for investors. Bitcoin is expected to recover in the long run because of more investors and a history of market rallies, but in the short term, difficulties and external factors make things less certain. Traders should keep a close watch on the $103,000–$106,000 range as a significant downturn could happen if it breaks.

Seeing as there is strong support close to $100,000 and the futures market is doing well, sell-offs may be viewed by long-term investors as a good time to pick up more Bitcoin (BTC).

At this important moment, how the market responds to economic and political news will play a key role for Bitcoin. Although we should be careful for now, the strength of Bitcoin’s main features implies any downward trend might only be a brief break before it continues upward.