Why is BTC’s price down?
Bitcoin’s price declined 0.83% to $104,004 in the past 24 hours due to a mix of geopolitical tensions, leveraged liquidations, and technical resistance.
1. Musk-Trump clash triggered $983M liquidations, mostly long positions.
2. Bearish technical signals (RSI divergence, MACD downtrend) pressured sentiment.
3. Spot ETF outflows ($358M on May 29) reduced institutional buying support.
Deep Dive
1. Primary Catalyst: Geopolitical Tensions & Liquidations
The public dispute between Elon Musk and Donald Trump sparked a risk-off sentiment, leading to $983M in crypto liquidations (89% longs) within 24 hours (CoinGlass). Bitcoin’s 3% drop to $101,579 intensified selling pressure, with $114M in long positions liquidated in 12 hours alone.
2. Technical Context: Bearish Momentum Builds
RSI14 at 42.52 (neutral) and MACD histogram at -1,160 signal weakening bullish momentum.
Price rejected at $108,160 (23.6% Fibonacci level), now testing $103,397 support. A break below risks a slide toward $100,000 (TradingView).
Declining exchange reserves (-371k BTC since April) suggest accumulation paused, reducing buy-side pressure.
3. Market Dynamics: Institutional Hesitation
Spot Bitcoin ETFs saw $358M outflows on May 29, ending a 10-day inflow streak (CryptoQuant).
BTC dominance rose to 63.75% as altcoins underperformed, reflecting capital rotation to stablecoins.
Conclusion
Bitcoin’s dip reflects a confluence of macro-driven liquidations, technical exhaustion, and reduced ETF inflows.
While long-term holders (75% of addresses) remain inactive, traders should watch $103,397 support and ETF flow reversals.
Will the $100K psychological level hold if geopolitical risks escalate further?
