Key Takeaways:
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The BTC is combined with a downward channel, but the weak onchain activity suggests a lack of momentum.
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Increasing core inflation data (2.7%) and adhesive price growth reduce the likelihood of Fed rates, pressure maintenance in bitcoin assets and risk.
Bitcoin (Btc) experienced noticeable volatility prices at the start of the week, with sharp weekends and Monday swings leading to a significant shaving in the derivatives market.
According to Glass node.
BTC-denominated open interest dropped by ~ 7%, falling to 334,000 from 360,000 BTC. Sharp refusal points to a temporary cluster of speculation -awarely, suggesting that the market is at a reset phase.
While Bitcoin Staying at $ 100,000- $ 110,000 range, BTC onchain activity shows signs of cooling. The metrics of profitability are fading, and the user’s participation remains covered, indicating a phase of integration. Glassnode noted that the market appears to have melted recent gains, likely to wait for a modified flow that the next leg is required to be higher.
From a technical point of view, Bitcoin’s failure to sweep external liquidity near $ 109,000 led to a gradual grinding of less than 4-hour charts. The current price action remains confined within a downward channel, with a major interest area between $ 103,400 and $ 104,600.
This zone is aligned with a Daily Fair Value GAP (FVG) and is supported by a 200-day exponential transfer of average (EMA), which raises the potential for a bounce.
Considering BTC collects internal liquidity within this range, a bullish breakout above the descending channel in the new highs remains a possible scenario. However, as long as the momentum is formed and the onchain activity is alive, the broader market structure is likely to remain in integration mode.
Related: Bitcoin Long-Term Holders Stack 800K BTC per month on Record Hodl Run
Bitcoin headwinds faced as the main inflation rises
A lack of bullish follow-through may mean that bearish momentum may continue this coming week. Despite the recent positive chatter around a potential interest rate cutting, the latest inflation data suggests that the Federal Reserve has little reason to move its bearing.
Expenditures of PCCE’s personal consumption or inflation, the Fed’s preferred measure, increased to 2.3%, consistent with expectations, while the Core PCE rose to 2.7%, slightly more than 2.6%expected. It has marked the first uprising since February 2025, indicating a modified inflationary pressure.
With the price growth showing the signs of adhesive, the Fed is likely to maintain its rate pause, maintaining financial conditions, which are not desirable for risk -owned risk such as Bitcoin.
Glass node Data Further supports the careful outlook, showing a minor of $ 7.7 billion increases in volume of place during Q2. Moving volume drops 36% earlier in the quarter, featuring a lack of speculation.
Related: BAKKT HOLDINGS FILES $ 1B Shelf Offering which can be -Fuel Bitcoin Buyys
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
