Bitcoin (BTC) is trading at the critically viewed $105,500 area after retreating from its record level of $111,800 reached last week.
Bitcoin's price has stabilized at around $105,597 following the fluctuations experienced on the first day of June. According to BTC Markets analyst Rachael Lucas, Bitcoin is currently at a critical threshold known as a pivot point, both psychologically and technically. This point could be pivotal for the cryptocurrency's next major upward movement.
Lucas points out that the strong upward momentum in Bitcoin's price has started to weaken in technical indicators like RSI and MACD. However, the analyst notes that the long-term outlook is still optimistic, emphasizing that there are increasing views that a new super cycle may be at the beginning in the market.
Levels to watch in Bitcoin's price
According to the information provided by the analyst, the critical support area for Bitcoin's price is around $103,000. Below this level, a more solid support point is highlighted at $97,600.
One of the two scenarios ahead for Bitcoin's price is a new upward movement towards $115,000 if the price holds above the $103,000 - $105,000 range. In the other scenario, if the price drops below $103,000, it is suggested that the price could enter a correction in the range of $93,000 to $97,000.
A period where altcoins are overshadowed
This volatility in Bitcoin's price is largely due to the intense interest from institutional investors in BTC. As demand from companies like Strategy, Metaplanet, and Twenty One increases, BTC's market dominance rises, while major altcoins remain overshadowed due to a lack of institutional interest.
BTC Markets analyst Lucas emphasizes that Bitcoin is now seen not just as digital gold, but as a strategic hedge in macro portfolios along with commodities and currencies. Lucas states that this transformation has made Bitcoin more sensitive to economic data, central bank announcements, and geopolitical risks.
