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Bitcoin consolidates near $105K, with $106K acting as immediate resistance after a strong May rally.
ETF inflows slow, but long-term holders continue accumulating BTC, signaling strong conviction.
Macro trends favor risk assets, boosting Bitcoin’s outlook amid cooling inflation and a weaker dollar.
As of June 2, 2025, Bitcoin (BTC) is trading just below $105,000, holding steady after a volatile yet bullish May. The leading cryptocurrency posted a monthly gain of around 10%, climbing to an all-time high of $111,970 before pulling back slightly near the end of the month. As June begins, a mix of macroeconomic catalysts, institutional flows, and on-chain activity is shaping Bitcoin’s short-term trajectory.
On-chain metrics reflect growing investor confidence, particularly from long-term holders. Over 66,000 BTC, valued at more than $7.2 billion, were withdrawn from exchanges in May alone, signaling a shift toward cold storage and long-term conviction.
Further supporting this trend, the total long-term holder supply surged by 1.39 million BTC between March and late May, now standing at over 15.7 million BTC. Meanwhile, addresses holding more than 1 BTC increased by 7%, reflecting a deeper engagement from retail investors.
This persistent accumulation is helping to reduce the available supply and dampen short-term selling pressure.
Favorable macroeconomic conditions have buoyed Bitcoin’s recent rally. Declining global inflation and easing monetary policy from central banks have renewed investor appetite for risk assets. A weakening US Dollar and falling real interest rates have also bolstered BTC’s appeal as an inflation hedge.
Additionally, Bitcoin’s rising correlation with equities and increasing integration into traditional financial markets, particularly through ETFs, underscore its maturing role in the broader economy.
While spot Bitcoin ETFs experienced record inflows during much of May, the final week saw a noticeable decline as some short-term investors locked in profits. U.S. Bitcoin ETFs recorded $211.8 million in net outflows on May 29 alone.
Despite this cooldown, the broader trend remains bullish. BlackRock’s iShares Bitcoin Trust (IBIT) added $6.22 billion in May, its best month to date. Total net inflows across all spot Bitcoin ETFs surpassed $5.2 billion, vastly outpacing gold ETF outflows during the same period.
Also Read: Wall Street Ditches Gold for Bitcoin: $9 Billion Pivot Says it All
The daily BTC chart shows Bitcoin pulling back slightly to around $104,959 after peaking near $112,000 in late May. The retracement has brought price action back toward a key Fibonacci level at $106,415 (1.0 Fib), which is now acting as immediate resistance.
BTC is holding well above the $100,000 level, a key psychological and technical support zone. Below this, layered supports exist at $99,567 (0.786 Fib), $94,191 (0.618 Fib), and $90,415 (0.5 Fib).
The immediate resistance is at $106,415. A break above this level could send BTC toward the next Fib extension at $115,118 (1.272 Fib).
BTC broke below a steep ascending channel, signaling a potential period of consolidation or retest of lower levels before a renewed push higher.
Stochastic RSI is near oversold territory (6 - 9 range), suggesting a potential bounce or reversal could be on the horizon if buying pressure resumes.
The technical setup indicates consolidation within a high-timeframe uptrend. The $100,000 - $106,000 range is likely to remain a critical zone for bulls to defend in the near term.
As the market digests May’s gains, attention now turns to macroeconomic data, especially the U.S. Core PCE index, the Federal Reserve’s preferred inflation gauge. A lower-than-expected reading could raise expectations for looser monetary policy, supporting Bitcoin’s case for further upside.
While short-term volatility is possible due to ETF outflows and global uncertainty, the structural support from institutional interest, strong on-chain metrics, and a favorable macro backdrop suggests Bitcoin’s medium-term trend remains bullish.
Also Read: Metaplanet Accelerates Bitcoin Acquisition with $21M Zero-Interest Bond Issuance
Bitcoin enters June with a resilient technical structure, strong long-term holder behavior, and a supportive macroeconomic environment. While short-term pullbacks and ETF slowdowns may temper enthusiasm, the broader outlook remains intact for continued upside, especially if BTC reclaims the $106,000 level with volume confirmation.
