Bitcoin weakens as appeal of safe havens increases

BTCUSD is notable for its high volatility. Bitcoin lost 4.43% in the three-day period from May 28 to May 30, and it fell 5.9% from the day it reached an all-time high of $111,980 on May 22 to June 3. Today, bitcoin is trading at $105,320, above the psychological level of $105,000. The closest resistance level is at $106,400. 

The Relative Strength Index (RSI) is at 50 on the daily timeframe. Since April 19, the indicator has been in the bullish zone and has entered the overbought zone four times. On June 3, it is indicating uncertain movement again, which points to investor caution and improved sentiment regarding short positions on bitcoin. The RSI on the 4-hour timeframe remains at 61. After a week in the buying zone, it has re-entered the selling zone, supporting near-term buying momentum.

The Moving Average Convergence and Divergence (MACD) indicator is in the positive zone on the daily timeframe. It points to gradually weakening selling momentum, as its histograms are noticeably below the 9-day simple moving average and are trending downward. The MACD on the 4-hour timeframe is below the zero line, suggesting waning selling momentum.

The major cryptocurrency is weakening as geopolitical tensions escalate, pushing investors towards safe havens. At the same time, SoSoValue reports that bitcoin-backed exchange traded funds (ETF) posted a modest outflow of $157.4 million last week, marking a break in the long weekly streak of inflows since mid-April. If the outflow intensifies, the crypto's price could plummet in the coming days.

In May, bitcoin hit a new all-time high of $111,980, implying gains of almost 11% over the month. If demand for ETFs continues to decline, long position holders will take profit, adding to selling pressure. If Trump’s tariffs and global uncertainty escalate, traders should be wary of a bitcoin price correction in June.

In case bitcoin faces resistance near the daily level of 106,400 and continues to correct, it could decline further towards the psychologically important level of 100,000.

Trading strategy option: sell at the current price with a Take Profit at 104,500 and a Stop Loss at 106,000.