Bitcoin holds $105,000 level but stands on 'fragile' grounds, analysts say

Bitcoin price has shown recovery over the weekend after U.S. President Donald Trump and Elon Musk's public fallout caused the cryptocurrency to briefly plummet near $100,500.

The world's largest cryptocurrency appears to have stabilized, holding steady at around $105,500 in the past 24 hours leading up to 11:00 p.m. on Sunday, according to The Block's bitcoin price page .

However, analysts say bitcoin's current standing is unstable.

"Trading above $105K signals strength, but structure remains fragile," said Dominick John, analyst at Kronos Research. "With the Fear & Greed Index at 55, sentiment has balanced markets in a wait-and-see mode, looking for a macro trigger or confirmation of trend."

HashKey Eco Labs CEO Kay Lu also stated that bitcoin is currently trading at a "delicate" range around key support levels, where nervous investors could easily panic and sell off their holdings at a single bearish news event.

Meanwhile, bitcoin's price support above $105,000 has been bolstered by waves of institutions adopting bitcoin corporate treasuries.

"BTC has been supported by the ‘BTC for Corporations’ narrative, with more companies following Strategy’s playbook," said Presto Research Analyst Min Jung.

Trump Media and Technology Group recently announced establishing a corporate bitcoin treasury with an offering of $2.5 billion, which GameStop followed by purchasing 4,710 BTC to stock up its treasury.

Bitcoin treasury mainstays Strategy and Metaplanet continue to show their conviction in the cryptocurrency with further buyings, with the Saylor-led company announcing its $1 billion perpetual preferred stock offering of STRD, the proceeds of which will be partly used for bitcoin purchases.

Watch for macro 

Looking forward, analysts say bitcoin's volatility in the short-term will shape around upcoming macroeconomic news.

"We could see volatility pick up mid-week … Both CPI and PPI are on the calendar, and any upside surprise in inflation data could weigh on risk assets broadly, including crypto," said Jung.

The U.S. Consumer Price Index is scheduled to be released this Wednesday, with the Producer Price Index slated for the following day. These key U.S. economic indicators could provide insights on whether the Federal Reserve will cut interest rates in its next meeting on June 17.

The CMEGroup's FedWatch Tool currently says there is a 99.9% chance that the Fed will keep its current interest rates at 4.25% to 4.50% in the next meeting.

"There likely won't be much market movement before that happens unless US trade talks advance or run into roadblocks in the meantime," said Jeff Mei, COO at BTSE.