Bitcoin (BTC) began June on the back foot, sliding below $104,000 to a low of $103,833.57 on June 2 as investors reacted to a fresh wave of ETF outflows and growing technical uncertainty.
Although May closed at a record monthly high near $105,700, market sentiment shifted quickly amid signs of distribution from whales and institutional sellers.
ETF outflows outweigh inflows
A six-week streak of inflows into U.S. spot bitcoin ETFs abruptly ended on May 30, when funds collectively recorded an outsized outflow of $616.22 million, according to Coinglass data.
The reversal marks a sharp departure from prior weeks, when ETF inflows had reinforced the bullish narrative and helped drive Bitcoin’s monthly gain of roughly 11%.
BlackRock’s IBIT, the largest fund in the cohort, led the withdrawals with $430.82 million redeemed, though it still manages over $69 billion in assets.
Fidelity’s FBTC and ARK 21Shares’ ARKB followed with outflows of $113.71 million and $120.14 million respectively, underscoring the broad nature of the sell-off.
While cumulative inflows across all ETFs remain positive at about $44.37 billion, the sudden spike in redemptions suggests investors are acting more cautiously amid rising macroeconomic and technical risks.
Bitcoin price downturn
On the charts, the recent drop from $109,000 to $103,833 pushed Bitcoin below the 0.786 Fibonacci retracement of the rally from its prior all-time high around $112,000.
The decline reflected heavy profit-taking at the end of May, exacerbated by bearish technical patterns such as a death cross on the 4-hour chart.
During the Monday European session, BTC briefly bounced to $105,500 but stalled near $105,800 — a zone where the 0.618 Fibonacci level converges with the 100 EMA to form a critical resistance cluster.
Although the 20 EMA was reclaimed, price continues to struggle under the 50 EMA at $106,000, reinforcing the view that bulls face an uphill battle to restore upward momentum.
If Bitcoin fails to break the $106,000–$107,000 resistance band, downside pressure could intensify and potentially pull the asset back toward recent lows near $103,200.
Volatility has been amplified by high-leverage trader James Wynn, who reopened a 100 BTC long with 40x leverage on Hyperliquid, leaving a dangerous liquidation level near $101,999.
Just these for now
Hoping BTC pulls lower but i don’t see it pic.twitter.com/wd9751v27t
— James Wynn (@JamesWynnReal) May 30, 2025
Wynn’s repeated high-leverage longs not only produced substantial floating losses but also encouraged speculative activity across the Hyperliquid platform.
After another unsuccessful attempt to avoid liquidation, Wynn announced a pause from perpetual trading, a move that highlighted broader concerns about excessive leverage in the market.
I’ve decided to give perp trading a break.
Thank you @HyperliquidX for your hospitality. Your service, impeccable. Your platform exquisite.
Its been a fun ride. Approx $4m into $100m and then back down to a total account loss of $17,500,000.
The time has come for me to…
— James Wynn (@JamesWynnReal) June 2, 2025
On-chain metrics send mixed signals
On-chain indicators show divergent behavior between whales and retail participants: large holders have steadily reduced exposure as BTC climbed above $81,000, while retail activity shows signs of peak buying — a dynamic that often precedes short-term market corrections.
Santiment noted elevated whale activity around the May 22 peak and observed that similar past patterns tended to signal local tops rather than sustainable breakouts.
Despite an 11% price rise over the past month, the relative strength index (RSI) has turned bearish and displays clear divergence as price struggles to reclaim crucial resistance zones.
Broader macroeconomic conditions continue to hang over the market, with traders closely watching Federal Reserve cues amid slowing job growth and cooling inflation.
A weakening U.S. dollar could provide a short-term tailwind for Bitcoin, but analysts remain split on whether current levels represent a springboard for a new rally or a prelude to deeper losses.
Glassnode’s MVRV ratio shows BTC trading within critical ranges that historically precede local tops, with the +1σ level near $119,400 acting as a psychological ceiling for many profit-takers.
While some traders expect a bounce from the $100,000 support area up to $113,000, risk of a deeper correction still dominates sentiment across spot and derivatives markets.
Throughout June, attention will stay focused on ETF flows, macro indicators, and whether Bitcoin can decisively reclaim the $106,000–$107,000 band to avoid sliding further into bearish territory.