Bitcoin sentiment is desperately holding onto any semblance of positivity, mirroring the fluctuating performance of BTC price, as a new week of volatility commences. After enduring a tumultuous week in the macroeconomic landscape, Bitcoin has now settled around the $26,000 mark, cautiously treading familiar territory. The absence of a clear market direction has placed market participants in a "wait and see" mode at the beginning of this week's trading.

With United States holidays limiting traditional market activities until June 20, there is a brief respite before any unexpected developments take place. However, last week's events, including BlackRock's application for a Bitcoin spot exchange-traded fund (ETF), continue to cast a shadow over the market. Speculation is now rife that Fidelity Investments might follow suit, adding to the anticipation of potential shifts in BTC price.

Traders and analysts are discussing several key topics that could influence Bitcoin's price trend. The recent weekly close for BTC/USD resulted in minimal changes over the past seven days, with the price hovering just above $26,000. Traders are cautiously awaiting new signals and avoiding adopting a bearish outlook until clearer indicators emerge. Some traders anticipate a test of the $26,900 trend line and a subsequent rise to $27,300, while others believe a dip to the demand area around $23,000 is possible before a return to $27,000.

On-chain analysis reveals that short-term holders (STHs), defined as entities holding coins for 155 days or less, are crucial in determining support levels for Bitcoin's price. Glassnode, an analytics firm, highlights the pivotal role of the Short-Term Holder Cost-Basis at $26,400. If the price falls below this level, STHs may face unrealized losses on their investments. Traders are closely monitoring these support levels to assess potential price movements.

In the macroeconomic landscape, market catalysts are expected to emerge later in the week, with the Federal Reserve Chair Jerome Powell's testimony before Congress and the release of Purchasing Managers' Index (PMI) data. Bitcoin's correlation with traditional risk assets and how macro triggers impact the market remains a focus for market participants. Recent observations indicate that Bitcoin has lost its positive correlation with the S&P 500, Nasdaq, and U.S. Dollar Index, leading to uncertainty regarding its performance.

Amidst Bitcoin's lackluster performance, the Grayscale Bitcoin Trust (GBTC) is experiencing renewed interest. GBTC, which has traded at a heavy discount to BTC spot price since its all-time highs in 2021, has seen a decrease in the negative premium following the announcement of BlackRock's Bitcoin spot ETF filing. The premium has reduced from -50% to -36.6%, indicating a change in sentiment. Buyers are showing interest, and speculations about an ETF offering from Fidelity Investments have also emerged.

Despite recent market events causing a slight dip in crypto market sentiment, the Crypto Fear & Greed Index remains relatively stable, hovering around the neutral range. Some view the negative reactions surrounding the BlackRock ETF story as a potential catalyst for the crypto market's continued rise.

Overall, Bitcoin sentiment remains cautiously optimistic as traders and analysts closely monitor key indicators and await further developments in the market.