Bitcoin (BTC)
$101,848 price remains above $101,000, though experiencing a 3% daily loss. This decline, however, impacts altcoins more significantly. The cryptocurrency had begun to stabilize when another unexpected pullback occurred. The question remains: what are the reasons behind this drop and what are the future expectations?
Reasons Behind Cryptocurrency Decline
Bitcoin failed to conquer the resistance area above $105,000, leading to a natural downturn. Moreover, customs tariff rates continue to exceed their March levels. This swift market pricing is reminiscent of previous recession worries when these rates were observed a few months ago.
Optimism for tariff resolution remains, with President Trump’s scheduled meeting with China’s President Xi this weekend anticipated as a positive development. Xi’s potential visit to the US in June adds to this optimism. While BTC has not lost its six-figure levels, it encountered a technical pullback due to unbreached resistance.
Analyst Miky suggested a potential pullback to $93,000 when the price was above $103,000, with several analysts sharing this expectation due to the nature of resistance levels.
Bitcoin and Cryptocurrency Forecast
The encouraging news is that weekend expectations of diminishing tariff impact have not yet reflected significantly in ETF data. Anticipated ETF inflows near today’s daily closure are likely to provide support. Persistent net inflows over the past few weeks are expected to strengthen further as tariff uncertainties resolve, thereby supporting spot markets.
Furthermore, no panic-inducing risks have emerged in the markets. The SPX continues with a 3% gain even with BTC’s decline. Consequently, this dip in cryptocurrencies, led by BTC, may present a buying opportunity for latecomers at lower prices.
Cryptocurrencies are always full of surprises. May marks the start of the “sell and go on vacation” mindset, and there are talks that tariffs might have a lasting effect, with recession concerns potentially affecting markets until August. For short-term upward focused traders, tomorrow’s expected 2.4% CPI data release could serve as a crucial trigger.
