Bitcoin is poised for a potential breakout as traders focus on the $107,500 level, identified as a critical zone for reaching new all-time highs. On June 4, Bitcoin, trading at $105,857.88, fluctuated around $106,000 during the Wall Street open, aiming for liquidity pools both above and below the current spot price.
The cryptocurrency’s recent spike to $107,000 neutralized short positions, while a dip to $105,000 cleared bids, setting the stage for heightened volatility. With macroeconomic conditions offering little impetus for risk-asset movement, traders await Friday’s Nonfarm Payrolls (NFP) report, projected to show 180,000 jobs added, which could spark a decisive move.
Despite a lack of clear catalysts, Bitcoin’s resilience and institutional interest keep the market optimistic for a push toward $110,000 or beyond.
Liquidity Dynamics Drive Bitcoin’s Range
Bitcoin’s price action remains confined within a tight range, with significant liquidity building at $104,500 and $107,500, according to CoinGlass data. The $107,500 zone is particularly crucial, as a breakout above this level could propel Bitcoin past its May 22 high of $111,891.30, per Coinbase.
Analyst Michaël van de Poppe highlighted this threshold, noting that surpassing it could also lift Ethereum to $3,000. Bitcoin’s market cap stands at $2.10 trillion, with 65% dominance in the crypto market, reflecting sustained investor confidence.
Trading volume reached $46 billion in the 24 hours ending June 4, driven by institutional inflows into spot Bitcoin ETFs, which recorded $150 million in net inflows on May 31.
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Macroeconomic Factors and Market Sentiment
The absence of strong macroeconomic triggers has kept Bitcoin in a consolidation phase, with volatility declining across risk assets. The U.S. dollar index fell to 97.2, a three-year low, supporting Bitcoin’s appeal as a hedge.
However, concerns linger over President Trump’s 50% tariffs on steel and aluminum, which could raise inflation and dampen risk appetite. The Fear & Greed Index, at 69, signals “greed” but not euphoria, indicating cautious optimism.
The upcoming NFP report, expected to show a steady 4.2% unemployment rate, could reinforce the Federal Reserve’s stance on holding interest rates, with a 55.6% chance of a September cut per the CME FedWatch Tool. A weaker-than-expected NFP could bolster Bitcoin by increasing rate-cut expectations.
Did You Know?
Bitcoin’s market cap of $2.10 trillion in June 2025 surpasses Tesla’s $1.03 trillion, making it one of the world’s largest assets by market value.
Technical Outlook and Potential Breakout
Bitcoin is trading above its 50-day exponential moving average of $100,445, signaling bullish momentum, but faces resistance at $108,300. The Relative Strength Index at 55 suggests mild bullishness, with a breakout above $107,500 potentially targeting $110,000-$112,000. A failure to hold $105,000 could see a retest of $102,000, a key support level.
On-chain data shows a 15% rise in wallets holding over 1 BTC from May 25 to June 1, indicating accumulation by long-term holders. The market’s structure, with higher lows and highs, supports a bullish trend unless $100,000 is breached, which could trigger a deeper correction to $93,200, per CoinGlass liquidity data.
Risks and Opportunities Ahead
Despite bullish signals, risks remain. Trump’s tariff policies and the debate over the “Big Beautiful Bill” could introduce volatility, particularly if fiscal concerns around the U.S. debt ceiling intensify.
The S&P 500’s 1.2% drop on May 29 reflects broader market jitters, with Bitcoin’s 0.7 correlation to the Nasdaq 100 suggesting potential spillover effects. However, Bitcoin’s growing adoption, including Pakistan’s integration into national reserves and Block’s Bitcoin payment solutions, supports its long-term outlook.
Analysts project Bitcoin could hit $120,000 by late June if it clears $108,000, with some forecasting $135,000 to $150,000 by year-end if institutional inflows persist.
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