Bitcoin Drops 3.23% in Week, Faces Bearish Weekly Close

Bitcoin's recent price decline has sparked concerns among traders and analysts, with key indicators suggesting further downside risks. As of June 5, Bitcoin is trading near $103,247, marking a 3.23% decline over the past week and falling below the critical $105,149 level. This drop has raised concerns about a potential bearish weekly candle close, which could signal further price weakness.

Technical trader Dr. Cat highlighted the significance of the upcoming weekly close, noting that if Bitcoin fails to close above $105,149, the Chikou Span (CS) will enter the candle range on the weekly chart. This technical breakdown could lead to a longer cool-off period for both price and time. Dr. Cat also pointed out that the Ichimoku Cloud is signaling weakness, with the Tenkan Sen dropping below the Kijun Sen, and the first downside target standing at the 12-hour Senkou Span B (SSB), around $102,400.

Derivatives-focused analyst Daan Crypto Trades reported a rise in Open Interest (OI) and aggregated funding rates despite declining prices. This combination often indicates that traders are opening long positions too early, attempting to catch a bottom. Such behavior can lead to further liquidations if the price fails to stabilize, increasing pressure on Bitcoin. Daan also observed a sharp uptick in spot selling activity since the U.S. market opened on June 5, which adds to the downside momentum and removes demand from the market. He expects Bitcoin ETFs to reflect negative net flows for the day, further signaling weak institutional interest.

Spot market activity is crucial for price support, and reduced buy-side demand often leads to faster price corrections. Combined with technical breakdowns, this trend places Bitcoin under significant stress. Under the Ichimoku model, once the daily uptrend is broken above the Kumo (cloud), recovery is not immediate. Historically, such patterns require at least 26 days or candles to reset bullish momentum, suggesting any potential rebound in Bitcoin's price may take time. Analysts remain cautious as Bitcoin navigates this pivotal phase, with June 9 marking a key threshold beyond which the outlook could turn decisively bearish if current levels do not hold.