Bitcoin Drops 1.4% Amid Geopolitical Tensions, Institutional Buying Keeps Price Above $105,000

Bitcoin's price has been fluctuating around the $105,000 mark, exhibiting bearish momentum despite managing to stay above the $100,000 threshold. Over the past 24 hours, the cryptocurrency has seen a slight decline of 1.4%, as markets navigate through geopolitical tensions and regulatory uncertainties. Traders are adopting a cautious approach, with many opting to safeguard their positions by purchasing more BTC puts, which now cost more than calls, signaling increased apprehension about a potential market downturn.

Recent liquidation activity has been substantial, with alternating waves of long and short liquidations. Early May saw a balance between long and short liquidations, reflecting a range-bound market. From May 23 to June 1, there was an increase in long liquidations as bulls used excessive leverage during minor pullbacks. A significant spike occurred on June 6, with nearly $300 million in short liquidations, triggering a short squeeze. This was followed by $200 million in long liquidations on June 10, demonstrating how quickly market sentiment can shift. From June 12–13, another $250 million in short positions were liquidated as volatility continued. The red and green zones on the chart indicate liquidation clusters, with leveraged positions facing significant liquidation risks at various price points. This pattern highlights a highly leveraged market where both bulls and bears are being punished, with rapid liquidations occurring in both directions.

Bitcoin's price is currently trading near $105,000 on the daily chart, showing a slight pullback from recent highs around $108,000. Several red-bodied candles with upper wicks indicate selling pressure into resistance. The price remains above the 102,000-104,000 area, which was a consolidation zone in the past. Technical indicators suggest an accumulating negative momentum. The MACD indicates a bearish crossing over, with the MACD line below the signal line and the histogram negative at -283, implying losing short-term momentum. The RSI is near 50, having crossed the downward moving average at 53.71, indicating a slight bearish trend. The RSI is not yet in the oversold territory, and the indicator has more space to move. The sentiment is still influenced by external macro uncertainty and geopolitical tension. The chart formation is neutral to bearish without any definite reversal signs, with the price ranging within a specified range. However, the momentum indicator has been indicating caution as the strength of the recent bullish trends seems to be dwindling.

Despite the bearish momentum, Bitcoin has maintained its position above $105,000 as the new week begins, supported by strong institutional buying. Ethereum is also showing strength, up 2% and trading around $2,550, finding support near $2,510 and experiencing institutional inflows as well. According to on-chain data, Bitcoin’s current cycle gain is 656%. While this is lower than past bull runs, over 1,000% in 2015–2018 and 2018–2022, it’s still impressive, especially considering Bitcoin’s market cap is much larger now. This suggests that demand remains robust, even if short-term volatility is causing concern. Although the Bitcoin price is still below the last all-time high of $112,000, demand has not waned, though there is a slight caution in the market at present.

Amid rising geopolitical tensions and market uncertainty, several positive developments have helped stabilize Bitcoin’s price this week. Michael Saylor’s advisory role in Pakistan’s crypto policy has sparked optimism, as the country looks to create its own Bitcoin reserve and launch a national crypto council, boosting confidence. At the same time, Galaxy Research has cooled fears over Bitcoin’s OP_Return spam concerns, with Alex Thorn calling the panic exaggerated and instead pushing focus toward meaningful upgrades like CheckTemplateVerify. Adding to the positive momentum, Bybit announced its new decentralized exchange, Byreal, built on Solana, highlighting growing innovation in the DeFi space. Together, these updates have helped support Bitcoin’s stability despite global war fears.