Bitcoin consolidates near $105K as traders eye the $107K resistance and $103K support amid growing short interest and volatility risks.
Negative funding rates highlight increased bearish bets, signaling a potential shakeout while long-term bullish momentum remains intact.
Despite recent declines from $130K, steady volume and strong support at $103K suggest bulls are still active in current price action.
Bitcoin trades at $105,227, showing signs of consolidation after recent high-volatility price swings. Despite a minor 0.07% drop in the last session, the broader structure remains bullish. However, near-term indicators suggest potential turbulence ahead. With funding rates turning negative, short positions have gained traction. This shift signals growing market uncertainty and a possible shakeout on both sides of the trade.
Volatility Returns as Key Levels Hold Firm
According to Ted X Post, after a volatile conclusion to May, Bitcoin entered the June session trading close to $105,300. The price action ranged from $105,200 to $105,393 in a narrow range. Despite multiple upward tries, Bitcoin was unable to overcome the $108,000 resistance. Rather, it kept fluctuating between $104,000 and $107,000. The drop from $111,000 in late May was firmly contained within the $103,000 support zone. Despite growing market tension, Bitcoin's several recoveries from that level confirm ongoing positive enthusiasm.
Source: Ted
Moreover, volume remained steady, reflecting ongoing trader engagement. Price surges in May lifted Bitcoin above $130,000 temporarily. That rally, however, reversed in early June. Currently, the asset holds just above $105,000. Hence, while the long-term trend remains bullish, the short-term direction lacks conviction.
Negative Funding Rates Raise Bearish Flags
Funding rate data offers deeper insight into current market dynamics. Most notably, the 8-hour average dropped to 0.0022% with recent dips into negative territory. These red-circled indicators suggest shorts are gaining control at current levels. Consequently, the market may be setting up for a volatile liquidation cascade.
Besides, white histogram bars reflect shifts in leverage intensity. Larger bars show elevated trading activity and possible overleveraging. Hence, the current structure shows rising bearish pressure paired with unresolved bullish intent. Additionally, such setups often precede sharp, unpredictable movements.
Source: Luca
Bitcoin’s structure remains intact for now. Still, traders should monitor the $107,000 resistance and the $103,000 support closely. Any decisive break could trigger amplified momentum. Moreover, funding dynamics may add fuel to sudden moves either way.
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