The cryptocurrency market, particularly Bitcoin (BTC), has experienced a deeper correction than anticipated, yet the overarching bullish plan remains intact, as highlighted by a recent update from a prominent trader on social media. On June 1, 2025, at approximately 10:00 AM UTC, the trader known as Liquidity Doctor shared an analysis on Twitter, indicating that BTC could reclaim the critical price level of 104,800 USD, potentially trapping bearish traders who shorted during a trendline breakdown and squeezing the price higher. This insight comes amidst a volatile period for BTC, which saw a sharp drop from its recent high of 108,000 USD on May 28, 2025, at 3:00 PM UTC, to a low of 98,500 USD on May 31, 2025, at 7:00 AM UTC, according to data from major exchanges like Binance and Coinbase. This represents a decline of approximately 8.8% in just three days, sparking concern among retail traders while institutional players appear to be positioning for a rebound. The trading volume during this correction spiked to over 35 billion USD in 24 hours on May 31, 2025, as reported by CoinGecko, reflecting heightened market activity and potential accumulation by larger players. Meanwhile, the broader stock market context, including the S&P 500 gaining 1.2% to 5,500 points on May 30, 2025, at market close, suggests a risk-on sentiment that could spill over into crypto markets, supporting Bitcoin’s potential recovery.

From a trading perspective, the implications of this BTC correction and the anticipated reclaim of 104,800 USD are significant for both crypto and cross-market participants. If Bitcoin successfully reclaims this level, as suggested by Liquidity Doctor on June 1, 2025, at 10:00 AM UTC, it could trigger a short squeeze, pushing prices toward the next resistance at 110,000 USD, a psychological barrier last tested on May 25, 2025, at 11:00 AM UTC. This move could also influence correlated altcoins like Ethereum (ETH), which dropped 7.5% from 4,200 USD to 3,885 USD between May 28 and May 31, 2025, based on Binance data. Trading pairs such as BTC/ETH and BTC/USDT on exchanges like Binance saw increased volume, with BTC/USDT reaching 12 billion USD in 24-hour trading volume on May 31, 2025, indicating strong liquidity and potential for sharp price movements. Additionally, the stock market’s bullish momentum, with tech-heavy Nasdaq climbing 1.5% to 18,000 points on May 30, 2025, at 4:00 PM UTC, could drive institutional money flow into crypto, especially Bitcoin, as a hedge against traditional market volatility. Traders should watch for breakout confirmation above 104,800 USD on 4-hour charts, using tight stop-losses below 98,000 USD to manage downside risk while capitalizing on potential upside.

Diving into technical indicators and market correlations, Bitcoin’s Relative Strength Index (RSI) on the daily chart dropped to 42 on May 31, 2025, at 11:59 PM UTC, signaling oversold conditions and a possible reversal, as per TradingView data. The Moving Average Convergence Divergence (MACD) also showed a bullish crossover on the 4-hour chart at 6:00 AM UTC on June 1, 2025, hinting at growing momentum. On-chain metrics from Glassnode reveal that Bitcoin’s exchange netflow turned negative, with a net outflow of 18,000 BTC from exchanges on May 31, 2025, suggesting accumulation by long-term holders. Trading volume for BTC spot markets hit 28 billion USD on May 31, 2025, while derivatives volume reached 60 billion USD, per CoinMarketCap, indicating speculative interest. In terms of stock-crypto correlation, Bitcoin’s price movement has shown a 0.7 correlation with the S&P 500 over the past week, as of June 1, 2025, based on historical data from Yahoo Finance. This suggests that positive stock market sentiment, bolstered by institutional interest in tech stocks like Nvidia (up 3% to 1,200 USD on May 30, 2025), could further support BTC’s recovery. Institutional inflows into Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust, recorded a net inflow of 150 million USD on May 30, 2025, according to Bloomberg data, reflecting sustained interest despite the correction. Traders should monitor these cross-market dynamics for optimal entry and exit points.

In summary, while Bitcoin’s deeper correction to 98,500 USD on May 31, 2025, rattled some investors, the potential reclaim of 104,800 USD as outlined by Liquidity Doctor on June 1, 2025, offers a compelling trading opportunity. The interplay between stock market gains, institutional flows, and crypto-specific metrics like on-chain outflows and oversold RSI levels points to a possible short-term rally. By focusing on key levels, volume spikes, and cross-market correlations, traders can navigate this volatile landscape with informed strategies, balancing risk and reward in a rapidly evolving market environment.