Bitcoin Holds Above $100,000 Despite Trump Comments

Bitcoin's price has been consolidating around $105,000, with liquidity building up above the current spot price. This consolidation comes after a brief drop to $103,400 following comments from US President Donald Trump on the Iran-Israel conflict. Traders now believe that a correction to areas below $100,000 is less likely as liquidity accumulates above $106,000.

Bitcoin's key support level remains at $100,000, a psychological barrier that the cryptocurrency has successfully held above since May 8. This level has not been convincingly retested recently, and traders are closely watching it for any signs of a breakdown. Michael van de Poppe, founder of MN Capital, noted that after being rejected from the $106,000 level, Bitcoin may drop lower to take the liquidity lying between $100,000 and $103,000. However, he also stated that the likelihood of Bitcoin dropping below $100,000 is less likely.

Pseudonymous analyst CrypNuevo shared a chart showing Bitcoin holding above the $100,000 level after successfully retesting it on June 6. The trader emphasized the importance of this support level holding and the need to flip $106,000 into support to push the price higher. The $100,000 level is considered an important psychological boundary, with implications for sentiment should it fail to hold.

Several traders are eyeing a potential upside liquidity grab with ask orders clustering above $106,000. The latest data showed price eating away bids around $105,000, with ask-orders clustering between the spot price and $109,000. Ask orders worth $70 million are building up around $106,500, with the $109,000-$110,000 cluster being another potentially significant liquidity area. If the $106,000 level is broken, it could spark a liquidation squeeze, forcing short sellers to close positions and driving prices toward $110,000, which is the next major liquidity cluster.

The recent price action has been influenced by various factors, including macroeconomic developments and geopolitical tensions. The price of Bitcoin has been affected by the oil price outlook and Middle East tensions, with traders debating whether the cryptocurrency will suffer as a result. Additionally, the US dollar's strength and inflation data have played a role in shaping Bitcoin's price movements, with the cryptocurrency's price strength returning as US inflation cools beyond expectations.

Despite the recent volatility, Bitcoin's price has managed to hold above the $100,000 mark, with institutional buyers providing support for the market. This has led to increased optimism among traders, who are now targeting higher price levels. However, some analysts remain cautious, warning of a potential deeper pullback if the cryptocurrency fails to hold above key support levels.

The recent price action has also highlighted the importance of liquidity in shaping Bitcoin's price movements. Traders are closely watching for signs of liquidity at key price levels, as this could provide valuable insights into the future direction of the market. For instance, the $106,000 level has emerged as a key liquidity point, with traders eyeing this level for potential price action.

In conclusion, while the likelihood of Bitcoin dropping below $100,000 has decreased, traders remain cautious, closely monitoring the price action for any signs of a potential breakout or correction. The cryptocurrency has been hovering around the $106,000 mark, with liquidity levels at this price point becoming a focal point for market participants. The next major move in Bitcoin's price will likely be influenced by liquidity levels and market sentiment, with traders and analysts closely watching for any signs of a breakout or breakdown.