On June 2, 2025, Bitcoin (BTC/USD) broke below the psychological threshold of $105,000 on the 1-hour chart, initiating a clear downward trend. Selling pressure intensified at higher levels, pushing the price down to the $104,800 range. Technical indicators are broadly bearish, and market sentiment remains cautious. In this analysis, we explore future possibilities based on the fundamentals of technical analysis.
Chart provided by cTrader platform
On the chart, both the blue 20EMA and red 200SMA are trending downward, forming a typical bearish structure. The 20EMA is significantly below the 200SMA, clearly signaling a short- to mid-term bearish trend. In such a scenario, a "sell-the-rally strategy" is often effective, and the moving averages may act as resistance.
Additionally, several recent candlesticks have long upper wicks, further confirming strong selling pressure near highs.
The MACD remains below the signal line, with the histogram still in negative territory. Even if short-term rebounds occur, overall momentum remains bearish, and there are no clear signs of a bottom yet.
The ADX is holding near 40, indicating a strong trend. This suggests the market is moving with clear directional momentum.
At the moment BTC/USD broke below $105,000, volume also rose significantly. This indicates concentrated selling at the breakout level, and a "breakdown with volume" is considered a highly reliable signal in technical terms.
| Level | Price | Description |
|---|---|---|
| Short-term Resistance | $105,200 | Recent rebound high. Aligned with 20EMA, prone to selling pressure |
| Next Target (If Price Rises) | $106,000 | Coincides with 200SMA. Strong overhead resistance |
| Short-term Support | $104,800 | Recent low zone. Multiple rebounds observed but now broken |
| Mid-term Support | $104,500 | Key level matching high volume zone |
From a technical standpoint, BTC/USD still favors a "sell-the-rally" approach. All indicators—moving averages, MACD, ADX, and volume—consistently point to bearish conditions. Any short-term rebound may be viewed as a selling opportunity.
That said, the $104,500 area aligns with a key volume zone, so temporary bounces are possible. Traders should monitor candlestick patterns and indicator divergences for precise entry timing.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Please make all investment decisions at your own discretion.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
Comment (0)