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TLDR:
- BTC price trades near $103K after losing key $105K support, risking a bearish weekly candle close.
- Open Interest and funding rates rise despite falling prices, suggesting mispositioned long trades.
- Spot market selling intensifies, with analysts warning of weak ETF inflows and poor demand.
- The Ichimoku model hints at a multi-week cooldown if the uptrend fails to recover above cloud levels.
Bitcoin’s recent price slide is triggering fresh concerns among traders and analysts as technical signals flash red.
The leading cryptocurrency is showing signs of weakening momentum, with key indicators suggesting further downside may be ahead. Despite earlier hopes for a bullish continuation, traders are now reconsidering near-term expectations.
Several analysts have flagged the importance of the upcoming weekly close, which could determine whether the current trend holds or breaks further. Data reflects rising leverage, heavy spot selling, and mounting bearish pressure as BTC hovers near critical levels.
BTC Price Below $105K Raises Weekly Chart Risks
As of June 5, Bitcoin (BTC) trades near $103,247 after dropping 1.9% over the past 24 hours, according to CoinGecko. The seven-day decline now stands at 3.23%, putting BTC below the $105,149 mark, a level some analysts view as critical.
Bitcoin price on CoinGeckoTechnical trader Dr. Cat warned that if Bitcoin fails to close this week above $105,149 on Bitstamp, the Chikou Span (CS) will enter the candle range on the weekly chart.
This would mark a technical breakdown just before a potential bullish Tenkan-Kijun (TK) cross expected Monday. Dr. Cat emphasized that a failure to maintain structure here may lead to a longer cool-off in both price and time.
He noted that the Ichimoku Cloud is currently signaling weakness, as the Tenkan Sen has dropped below the Kijun Sen. The first downside target stands at the 12-hour Senkou Span B (SSB), currently around $102,400.
$BTC Bitcoin
⛳️🐂Further red flags for bulls on the daily: CS closed in the candles and Tenkan Sen got below Kijun Sen.
📉At this point the picture is more clear already and everything points to a lower low: the indicator metrics and the bearish N wave as per the Wave Theory… https://t.co/JaMg9nvtYG pic.twitter.com/5NQnpLXJXn
— Dr Cat (@DoctorCatX) June 5, 2025
Daan Crypto Trades, a derivatives-focused analyst, reported a rise in Open Interest (OI) measured in BTC during the current drop. Aggregated funding rates are also climbing, despite declining prices. This combination often signals that traders are opening long positions too early, attempting to catch a bottom.
Daan added that this type of behavior can lead to further liquidations if the price fails to stabilize. His June 4 analysis already warned of excessive leverage building around Bitcoin’s recent highs between $108K and $110K. That situation now appears to be unwinding, increasing pressure on BTC.
Spot Selling Activity Pressures BTC Price Further
In addition to rising leverage, Daan observed a sharp uptick in spot selling activity since the U.S. market opened on June 5. This real selling adds to the downside momentum and removes demand from the market.
He expects Bitcoin ETFs to reflect negative net flows for the day, further signaling weak institutional interest.
$BTC Open Interest denominated in coins is going up and aggregated funding grinding higher as well on this move down. Not what you'd want to see ideally. Likely a lot of knife catching.
Also quite a lot of spot selling today since the US market open. Expecting ETFs to post a… https://t.co/gQ2JTOMSqT pic.twitter.com/B4Qy1rUh7s
— Daan Crypto Trades (@DaanCrypto) June 5, 2025
Spot market activity plays a critical role in price support, and reduced buy-side demand often leads to faster price corrections. Combined with technical breakdowns, this trend places Bitcoin under stress.
Dr. Cat also explained that, under the Ichimoku model, once the daily uptrend is broken above the Kumo (cloud), recovery is not immediate. Historically, such patterns require at least 26 days or candles to reset bullish momentum. This suggests any potential rebound in BTC price may take time.
He reiterated that June 9 marks a key threshold, beyond which the outlook could turn decisively bearish if current levels do not hold. Analysts remain cautious as BTC navigates this pivotal phase.
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