Bitcoin Drops 5% Amid Trump Musk Feud, Analysts Predict 25% Gain

Bitcoin, the premier cryptocurrency, recently experienced a significant price dip due to a public feud between US President Donald Trump and Elon Musk, which negatively impacted the US financial markets. The cryptocurrency crashed by an estimated 5% from $106,000 to trade below $101,000. Despite this short-term volatility, several key technical indicators now suggest a potentially bullish setup, with this latest pullback completing a series of signals that historically precede major price rallies.

In an X post on June 6, a market expert with the username CrypFlow shared a bullish Bitcoin prediction amidst an ongoing price correction. The analyst observed that the Bitcoin market has witnessed a steady price correction since the cryptocurrency achieved a new all-time high of $111,970 on May 22. CrypFlow stated that this price retracement, along with other technical indicators, suggests that Bitcoin is setting to repeat its price rally from Q4 2024.

The first indicator observed by the analyst is the golden cross, which occurs when the 50-day simple moving average (50SMA) crosses above the 200-day simple moving average (200SMA) in early June 2025. This golden cross is a common bullish indicator that signals a shift in market momentum and was last seen in November 2024. Additionally, there is a Bitcoin price breakout above a long-standing purple downward trendline that originated in December 2024. This breakout mirrors another move seen in early November 2024, when BTC breached the descending resistance that began in March 2024.

The ongoing price correction represents the final indicator, as Bitcoin also suffered an estimated 10% price fall in November, dropping from $74,500 to $68,500 before an explosive price rally. CrypFlow’s analysis suggests that if Bitcoin is repeating its price rally from Q4 2024, the premier cryptocurrency could produce a 62% price gain, translating into potential targets around $170,000. However, the analyst has set a more conservative initial price target of $130,000, representing a 25% gain from current market levels.

At press time, Bitcoin trades at $104,850 after a 2.57% gain in the past day. The general BTC market sentiment remains bullish despite a Fear & Greed Index of 45, which indicates Fear. The Coincodex analyst team is backing this market’s positivity with a price projection of $134,074 in five days and $155,864 in three months.

According to the analyst's forecast, if Bitcoin is repeating its price rally from Q4 2024, the premier cryptocurrency could produce a 62% price gain, translating into potential targets around $170,000. However, the analyst has set a more conservative initial price target of $130,000, representing a 25% gain from current market levels. The ongoing price correction represents the final indicator, as Bitcoin also suffered an estimated 10% price fall in November, dropping from $74,500 to $68,500 before an explosive price rally. The first indicator observed by the analyst is the golden cross, which occurs when the 50-day simple moving average (50SMA) crosses above the 200-day simple moving average (200SMA) in early June 2025. This golden cross is a common bullish indicator that signals a shift in market momentum and was last seen in November 2024. Additionally, there is a Bitcoin price breakout above a long-standing purple downward trendline that originated in December 2024. This breakout mirrors another move seen in early November 2024, when BTC breached the descending resistance that began in March 2024.