Key points:
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Bitcoin is in line for lower lows amid falling RSI and a retest of $100,000.
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Traders have little hope of a quick BTC price rebound and return to higher levels as Trump and Musk stoke uncertainty.
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US labor market data is due to inject fresh volatility on June 6.
Bitcoin (BTC) returned to $103,000 before the June 6 Wall Street open as markets recovered from snap losses.
Trader: BTC price “breakdown has begun”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD maintaining the upside after reversing at $100,500 into the June 5 daily close.
A public argument between US President Donald Trump and SpaceX CEO Elon Musk was behind the volatility, with the latter’s allegations sparking over $300 million in crypto liquidations.
Despite Bitcoin holding $100,000 support, the event exacerbated existing concerns over a deeper BTC price correction.
For trader Roman, the high-time frame BTC/USD chart had “bearish signs all over it.”
“The $BTC breakdown has begun!” he told followers in an ongoing analysis on X.
“Eyeing 95k and possibly lower. Depends what happens when we consolidate.”
Fellow trader Friedrich agreed on the chance for sub-$100,000 levels to come next, calling the price breakdown “annoying.”
“What to expect? A retest around 105Ks and bleed toward 87K. Or a reclaim above 105.8K-106K and the journey toward a new ATH begins,” his X post read.
Even those with a more bullish perspective on the market saw the potential for a period of short-term weakness.
Commentator Kevin Svenson flagged a decline in Bitcoin’s relative strength index (RSI) on daily time frames.
“The daily RSI structure is an important indicator to follow,” he wrote.
“Right now, the daily RSI is still pointing downward, but we may be a week away from a potential reversal signal.”
Nonfarm payrolls tipped to excite risk assets
Others looked ahead to forthcoming US macroeconomic data as the next source of risk-asset volatility.
Related: $100K retest vs highest monthly close ever: 5 things to know in Bitcoin this week
Nonfarm payrolls numbers, as a reflection of labor market strength amid high interest rates, were of key importance for many.
“The morning NFP & Unemployment reports are likely going to be catalysts for volatility,” Keith Alan, co-founder of trading resource Material Indicators, argued the previous day.
Alan added that any upward swings in unemployment could ultimately form a silver lining for crypto and stocks, with the implication that the hawkish Federal Reserve policy may loosen sooner.
“I think the market would like to see a strong economy even if it means rates are high for longer, but nobody would be surprised by a .1% bump in the UNRATE, but anything bigger would turn up the heat on the FED to cut in Q3,” he said.
On Bitcoin, Alan added that he had not “ruled out” a return to as low as $93,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
