The current week turned out to be volatile for BTC. The two-week consolidation ended with a sharp rise above the $28,000 mark on increased volumes. Then, the asset had every chance of building on success and extending gains.

However, sellers managed to seize the initiative, and BTC began to decline. As of June 2, the cryptocurrency is trading near the $27,000 level, and the price has almost trimmed all its early gains. Trading volumes remain low, and market sentiment indicates a possible continued decline.

Fundamental factors

Despite growing bearish sentiment among BTC investors, there is every reason to believe that the cryptocurrency will resume growth in the medium term. Firstly, this is indicated by the fact that liquidity has been successfully removed below the $26,000 mark, where long-term investors entered the market in the early spring.

A deal to raise the US national debt limit is reportedly at the final stage. The bill will now go to President Joe Biden's desk for his signature. In addition to easing tension in the stock and other markets, the entry of this document into legal force means additional liquidity from the US Treasury in the amount of $4 trillion.

Global financial markets are confident that the US Federal Reserve will keep the key rate unchanged despite the deflationary trend at the end of May. Only 36% of investors expect the regulator to raise interest rates at its June meeting, which gives markets hope for a gradual end to the Fed's hawkish policy.

The monetary policy of the US central bank has already resulted in regional banks facing the largest outflow of funds since 1984 in the first quarter of 2023. According to FDIC data, customers withdrew more than $470 billion from US banks. In addition, Tether's market capitalization reached $83.2 billion, an all-time high.

BTC/USD analysis

Positive fundamental factors have not yet had an impact on the price of BTC. The cryptocurrency is trading near the $27,000 level, with daily trading volumes at around $14 billion. Buyers managed to retain control of the support level of $26,500. However, the fact that the price has dropped below $27,000, indicates a further decline.

From a technical point of view, BTC/USD is likely to extend its recovery. The stochastic indicator has formed a bullish crossover, and the RSI is approaching the 50 mark. The MACD continues to move sideways, reflecting a lull in the market.

Bitcoin is still at the MA100 level, which potentially allows the asset to resume its upward movement. However, at this stage, the downtrend line acts as a strong obstacle to BTC. Trading volumes have not exceeded the $25 billion mark for more than three weeks. However, the situation may change on a batch of upbeat statistics.

Conclusion

The token's sluggish sideways movement is coming to an end. Trading activity is subdued, but things are likely to change soon. Despite positive fundamental factors, bears are expected to make another attempt to reach the $25,000 mark. In the medium term, like the entire crypto market, bitcoin looks bullish.