Bitcoin's liquidity landscape is shaping price support levels and setting the stage for potential bullish continuation in the coming week. As BTC enters another macroeconomic cycle, bulls hope the retest of the $100K support level has concluded.
Weekly Close Brings Bitcoin Bullish Signals
Bitcoin successfully breached $106,000 ahead of the June 8 weekly close before encountering sell pressure. Despite significant volatility throughout the week, BTC/USD nearly returned to its starting point while maintaining its weekly opening position.
This price action carries important implications:
- Preserved support at $104,400 marks the fourth consecutive weekly gain
- Daily close above $106,600 resistance needed to confirm bullish continuation
- Higher lows formation suggests accumulating strength for next breakout
Analyst Rekt Capital noted: "Bitcoin broke its two-week downtrend and is now testing resistance at $106,600. Some rejection here is normal, but the goal is a daily close above this level to maintain the uptrend."
Liquidity Zones Become Market Focus
Exchange order book liquidity has become central to recent Bitcoin price action analysis. Throughout May and June, BTC exhibited rapid fluctuations designed to "capture" thickening liquidity zones.
Key levels to watch:
- $100,000 - Critical support level that could trigger deeper correction if broken
- $112,000 - Current all-time high with likely stop-loss orders above
- $120,000 - Next psychological target if resistance flips to support
👉 Discover how liquidity impacts crypto markets
Daan Crypto Trades observed: "The liquidation chart tells the same story as technical analysis - large liquidity clusters align precisely with key levels. Breaking below $100K could accelerate downward movement."
Macroeconomic Factors to Watch
This week's economic calendar brings crucial inflation data ahead of the June FOMC meeting:
| Date | Economic Release |
|---|---|
| June 11 | CPI (May) |
| June 12 | PPI + Unemployment Data |
Market expectations:
- 0% chance of June/July rate cuts
- 25 basis points cut priced for September
- Possible inflation resurgence in H2 2025 per Mosaic Asset research
"Multiple indicators show inflation cooling, but historical comparisons to the 1970s suggest this disinflationary trend may soon reverse," warned Mosaic analysts.
STH Resistance Forms at $106,200
Short-term holder (STH) behavior continues influencing Bitcoin's price action:
- STH cost basis creates resistance at $106,200
- Support zone forms at $97,500 for 3-6 month holders
- Panic selling risk increases at breakeven points
CryptoQuant's Burak Kesmeci explained: "Loss-making STHs tend to panic when prices approach their breakeven point. This transforms the zone into potential resistance as they exit positions."
👉 Learn about holder behavior patterns
Market Sentiment and Political Factors
The public feud between Donald Trump and Elon Musk has unexpectedly benefited crypto holders. Santiment suggests this may have created a classic "sell the rumor, buy the fact" scenario.
Key observations:
- Increased discussion around crypto influencers often precedes reversals
- Market overreaction to political disputes creates buying opportunities
- True fundamentals remain stronger than temporary sentiment shifts
FAQ: Bitcoin Price Action Explained
Q: Why is $100K so important for Bitcoin?
A: It represents both psychological support and a key liquidity zone where many long positions would face liquidation if broken.
Q: What's driving Bitcoin's volatility?
A: A combination of macroeconomic uncertainty, STH trading activity, and institutional liquidity strategies.
Q: When might the Fed cut interest rates?
A: Markets currently expect the first 0.25% cut in September, though this depends on inflation data.
Q: How do short-term holders affect BTC price?
A: They create concentrated resistance/support levels based on their aggregate cost basis and tendency to panic sell.
Q: What's the next key level after $112K?
A: $120K becomes the next major psychological target if bulls maintain control.
Q: Could political factors impact crypto markets?
A: While temporary sentiment shifts occur, Bitcoin's fundamentals remain relatively insulated from political noise.
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