Bitcoin’s recent price movement paints a picture of cautious optimism as the world’s largest cryptocurrency stalls at around $105,000 amid back-to-back outflows from spot ETFs and shifting investor sentiment. Despite short-term headwinds, underlying technicals and supply dynamics suggest a bullish setup could be forming.
Bitcoin Stalls as Profit-Taking and ETF Outflows Weigh
Bitcoin traded at $105,550 on Sunday, June 8, registering a modest recovery of 5% from last week’s low but still trailing 5.75% behind its 2024 high of $111,900. The correction follows a robust rally in May when Bitcoin surged by nearly 50% from its April lows to reach new record levels. The pause in momentum is largely attributed to investor profit-taking and negative flows in exchange-traded funds.
According to data from SoSoValue, spot Bitcoin ETFs recorded outflows of $128 million last week, on top of the $157 million pulled a week earlier. This marks the first two consecutive weeks of outflows since April, signaling a cooling institutional appetite—at least temporarily.
Neutral Sentiment and China Concerns Add Pressure
Another contributing factor to Bitcoin’s current indecisiveness is the shift in market sentiment. The Crypto Fear & Greed Index, a widely followed barometer of investor mood, has dipped to a neutral reading of 56, down from a higher greed zone earlier. This suggests that traders are currently uncertain about the next directional move.
Sentiment was further dampened by reports indicating that China might sell its seized Bitcoin holdings. The country reportedly holds over 190,000 BTC—valued at more than $20 billion. Although no official confirmation has surfaced, such a move could flood the market with significant supply, potentially putting downward pressure on prices in the short term.
Supply Decline and Institutional Demand Provide Support
Despite the current stalling, Bitcoin fundamentals remain strong, especially on the supply side. Exchange-held BTC has continued its downward trend, with current holdings falling to 1.18 million from 1.35 million at the start of June. For perspective, over 3.5 million BTC were held on exchanges in 2020. This sharp decline suggests a growing trend of long-term holding, often viewed as a bullish indicator.
Bitcoin supply on exchanges | Source: Santiment
Simultaneously, institutional interest shows no signs of waning. Michael Saylor’s Strategy is raising over $2 billion to further accumulate Bitcoin. Trump Media has also filed to raise up to $12 billion, part of which may go toward Bitcoin acquisitions. Japanese firm MetaPlanet and The Blockchain Group are likewise ramping up their purchases, highlighting growing corporate conviction in the asset.
Technical Patterns Signal Possible Breakout
On the technical front, Bitcoin’s chart remains constructive. A cup-and-handle formation is in the final stages of completion—often a precursor to bullish continuation. Bitcoin also continues to hold above both the 50-day and 200-day moving averages, which typically act as strong support zones in trending markets.
BTC price chart | Source: TradingView
Moreover, Bitcoin is trading above a key pivot level identified using the Murrey Math Lines tool, reinforcing the potential for an upward breakout. Should the coin break past the handle resistance, the immediate target is $109,477, followed by a retest of its all-time high at $111,900. A successful breach of that level could pave the way for a longer-term rally towards the $150,000 mark.
Consolidation Before the Next Leg Up?
While short-term volatility may persist due to macroeconomic concerns and ETF outflows, the overall structure suggests Bitcoin is gearing up for a renewed rally. Declining exchange supply and growing institutional demand offer strong tailwinds, even as market sentiment temporarily cools.
As such, traders and investors may see current price levels as an accumulation zone ahead of a potential breakout in the coming weeks.
