On June 5, 2025, BTC price slid below the crucial $105,000 support level, reflecting broader market consolidation and cooling investor sentiment following a strong rally earlier this quarter. The drop was accompanied by declines across the altcoin market, with top performers like Solana, Cardano, and Avalanche shedding between 4% and 6% in 24 hours.
Although this correction was anticipated by technical analysts after weeks of upward momentum, the sudden nature of the dip has renewed concerns about short-term volatility, especially with looming macroeconomic and regulatory headwinds.
Bitcoin Market Overview (as of June 5, 2025)
| Metric | Value |
|---|---|
| Current Price | $104,300 |
| 24-Hour Change | -2.7% |
| Weekly Performance | -6.1% |
| Market Cap | $2.06 Trillion |
| Trading Volume (24H) | $39.7 Billion |
| Dominance Rate | 49.6% |
| 2025 YTD Growth | +72% |
Why Bitcoin Dropped Below $105,000?
1. Profit-Taking After Q2 Rally
BTC price surged nearly 90% between January and May 2025, reaching a local high of $112,700. With such gains on the table, large holders and institutional traders began rotating profits out of BTC.
2. Market Consolidation Phase
Technical indicators show that Bitcoin entered an overbought zone in late May. A pullback was statistically probable, especially after failing to convincingly break above the $110,000 resistance level.
3. U.S. Treasury Yields & Dollar Strength
Stronger-than-expected U.S. economic data has pushed treasury yields higher and revived the dollar’s strength. This macro backdrop tends to reduce risk appetite in speculative assets like crypto.
4. ETF Inflows Slow Down
Spot Bitcoin ETFs, which were a major bullish driver in Q1, have shown a slight dip in net inflows this week — signaling reduced institutional demand in the short term.
Altcoins Follow Bitcoin’s Lead — Up to 6% Down
| Altcoin | 24H Price Change | Current Price |
|---|---|---|
| Ethereum (ETH) | -3.8% | $5,720 |
| Solana (SOL) | -5.4% | $165.30 |
| Cardano (ADA) | -6.1% | $0.68 |
| Avalanche (AVAX) | -4.9% | $42.85 |
| XRP | -3.5% | $0.77 |
| Toncoin (TON) | -2.2% | $7.10 |
The correction was widespread, with DeFi tokens, meme coins, and even large-cap altcoins falling in tandem with Bitcoin. Notably, Solana and Avalanche — two of the best performers in May — saw the steepest declines.
Technical Outlook: Is Bitcoin’s Uptrend at Risk?
Key Levels to Watch:
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Immediate Support: $102,500 and $98,700
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Critical Resistance: $107,500 and $110,000
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200 EMA (Daily): $96,400 – a strong long-term support
Indicators:
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RSI: 47 – Neutral, not oversold yet
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MACD: Bearish crossover forming
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Volume Trend: Declining, suggesting cooling interest in short term
If BTC price fails to reclaim $105,500 in the coming sessions, it could trigger another leg down toward the $100,000 psychological level or even the high-$90,000s before support kicks in.
Bitcoin Price Forecast: June 2025 Scenarios
| Outlook | Price Range | Key Assumptions |
|---|---|---|
| Bullish | $110,000 – $115,000 | Quick ETF inflow rebound, strong CPI data |
| Neutral | $100,000 – $108,000 | Continued consolidation, sideways macro trend |
| Bearish | $92,000 – $98,000 | Global risk-off mood, aggressive rate outlook |
Market Reactions & Expert Opinions
🔸 Mike McGlone, Bloomberg Analyst:
“Bitcoin is still in a macro uptrend. Corrections like this are typical after big runs. Watch for strength to return near the $100K mark.”
🔸 CryptoQuant On-Chain Insight:
“There’s no spike in exchange inflows — meaning whales are not panic-selling. This seems more like a healthy correction, not the start of a crash.”
🔸 Crypto India Reports:
“Indian traders are shifting back to stablecoins like USDT-INR amid BTC’s volatility, but long-term accumulation interest remains high.”
Conclusion: Is This the Start of a Crash or Just a Dip?
While BTC price dropping below $105,000 may sound alarming on the surface, the overall market sentiment remains cautiously optimistic. With macro conditions still supportive and long-term adoption trends intact, this pullback could be seen as a natural correction rather than a trend reversal.
Altcoin investors should be prepared for continued choppy waters, especially as the market digests Pump.fun’s token impact, ETF data, and potential central bank rate decisions in the coming weeks.
For long-term investors, accumulation near key support zones — especially if BTC dips below $100K — may offer strong risk-reward opportunities.
