5 Things to know in Bitcoin this week

Bitcoin (BTC) starts June with BTC price action in a dangerous place — can buyers preserve key bull market support levels?

• Bitcoin traders are gearing up for fresh volatility as the highest-ever monthly close contrasts with increasing bets of a $100,000 retest.

• Labor market weakness and Fed policy are back under the microscope as inflation diverges from interest rates.

• The latest price volatility has led investors across the hodler spectrum to rethink their BTC exposure.

• Retail is only just waking up, but Bitcoin whales are already exhibiting classic trend reversal behavior.

• Can profitability fuel another run to as high as $120,000?

Bitcoin RSI data taints best-ever monthly close

Bitcoin managed to “save” the weekly candle close by the skin of its teeth, capping a week of retracement, which at one point totaled 8%.

At around $105,700, data from Cointelegraph Markets Pro and TradingView shows, the weekly close came in above a key level from December 2024 — one which analysis stated needed to hold.

$BTC / $USD – Update

We held above $104,500 on the weekly close. Bullish on this. pic.twitter.com/anfq88qeQt

— Crypto Tony (@CryptoTony__) June 2, 2025

The results, however, were bittersweet, with a bearish divergence playing out on the relative strength index (RSI).

A classic trend strength indicator, RSI has printed a lower high as price hits and withdraws from its highest-ever levels.

“Weekly bearish divergence locked in – and a potential bearish retest forming here as well,” popular trader Jelle warned in a post on X. 

“Big day ahead for Bitcoin, testing some lower levels is not unlikely so long as the black line isn’t reclaimed.”

May ultimately sealed 11% gains, and marked the highest monthly close ever for BTC/USD despite the late comedown.

Now, data from monitoring resource CoinGlass shows that the majority of order book liquidity lies above, not below, price.

In his latest X thread, fellow trader CrypNuevo used liquidity to predict an eventual rebound to $113,000.

‘We’ll eventually hit that range. Ideally $100k –> $113k,” he argued about his preferred BTC price trajectory.

Powell in the spotlight as inflation and Fed diverge 

US unemployment and Federal Reserve policy are the two key elements on the radar for risk-asset traders this week.

The strength of the labor market is under scrutiny after hints of weakness in recent data challenged the Fed’s ability to hold interest rates “higher for longer.”

The April print of the Personal Consumption Expenditures (PCE) index, which came in at or below expectations, at the same time confirmed slowing inflationary pressure.

“The moderating level of inflation means that the short-term fed funds interest rate is the highest above PCE since heading into the financial crisis in 2008,” trading firm Mosaic writes in the latest edition of its regular newsletter, “The Market Mosaic.”

“That might explain why Trump summoned Fed Chair Jerome Powell this week to pressure the central bank into cutting rates.”

US President Donald Trump’s first meeting with Powell last week nonetheless did little to boost bets that current hawkish policy may change in the near future. The latest data from CME Group’s FedWatch Tool shows markets rejecting the possibility of a rate cut before September.

Powell himself is due to speak at the opening of the Fed Board’s International Finance Division 75th Anniversary Conference in Washington DC on June 2.

Continuing, Mosaic Asset identifies a potential Bitcoin tailwind in the form of declining US dollar strength against the background of trade-tariff uncertainty.

The US dollar index (DXY) has dropped back below 99 after flipping the three-figure boundary from support to resistance last month.

“If downside in DXY accelerates after losing the 100 level, that could also signal long-term concern over the outlook for U.S. economic growth and fiscal condition,” Mosaic adds. 

“That could serve as another bullish catalyst for precious metals and Bitcoin.”

Hodler flows suggest “market in transition”

Bitcoin’s roughly 8% comedown from all-time highs has already sparked a shift in investor behavior.

While preserving $105,000 at the latest weekly close, BTC investors have not retained the levels of exposure seen during the height of upside in May.

In its latest research, onchain analytics platform CryptoQuant reveals three signs that hodlers have begun to reduce risk.

“These include significant stablecoin outflows from Binance, a decline in long-term holder (LTH) interest, and contrasting accumulation patterns among different wallet cohorts,” contributor Amr Taha summarizes in one of its “Quicktake” blog posts.

Binance stablecoin outflows tapped $1 billion at the end of May —…