The MFG BITCOIN REPORT

New support level and perpetual contracts.

₿ Bitcoin Market Update

From the desk of Gerald Peters - June 28, 2026

Afternoon MFG,

Unfortunately, the recent breakout attempt has completely lost momentum. Price failed to hold above resistance, and all of our key indicators have rolled over into bearish territory.

The next level I’m watching is $58,000. If the bulls can defend that area this week, it could become a solid base to build a new Stage 2 breakout from.

Will that happen?

Right now, the chart isn’t giving us much evidence that it will. The trend is down until proven otherwise, so there’s no reason to force a trade.

Patience pays.

My game plan is simple: if Bitcoin can reclaim $60,400 with strength, I’ll look to add perpetual contracts and trade the next breakout. Until then, I’m staying patient and letting the market come to me.

Remember, our job isn’t to predict. Our job is to react.

Below in the educational section of the newsletter I breakdown the perpetual contracts in clear and simple detail.

— GP Gerald Peters - @fullauto11 | Text 1-936-661-7786

A Bitcoin perpetual contract (perpetual futures or “perps”) is a derivative that lets you speculate on the price of Bitcoin without actually owning any Bitcoin. Unlike a traditional futures contract, it never expires, so you can hold the position indefinitely as long as you meet the margin requirements.

Here’s how they work:

1. You Don’t Own Bitcoin

When you buy a perpetual contract, you’re not buying BTC itself. You’re entering an agreement that tracks Bitcoin’s price.

• If Bitcoin rises and you’re long, you profit.

• If Bitcoin falls and you’re short, you profit.

This ability to bet on both directions is one reason perps are so popular with traders.

2. Leverage

Perpetual contracts allow leverage.

For example:

• Deposit $1,000

• Use 10× leverage

• Control $10,000 worth of Bitcoin

👉 If Bitcoin rises 5%, your position gains roughly 50%.

If Bitcoin falls 10%, you could lose your entire margin and be liquidated.

Leverage magnifies both gains and losses.

3. Funding Rate

Since perpetual contracts never expire, exchanges use a funding rate to keep the contract price close to the spot price.

• Positive funding: Longs pay shorts.

• Negative funding: Shorts pay longs.

Funding is typically exchanged every 8 hours (varies by exchange).

High positive funding often signals excessive bullishness.

High negative funding often signals excessive bearishness.

Many professional traders use funding rates as a sentiment indicator.

4. Liquidation

If losses become too large and your collateral falls below the maintenance margin, the exchange automatically closes your trade.

This is called liquidation.

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This is why risk management is essential when trading perpetuals.

Why Institutions Use Perpetuals

Perpetuals allow traders to:

• Hedge Bitcoin holdings

• Trade with leverage

• Go short easily

• Avoid moving large amounts of spot Bitcoin

• Execute sophisticated trading strategies

Today, perpetual contracts account for a significant share of global crypto trading volume.

How This Fits Into the Money Flow Trading System

For the Money Flow Trading Society, perpetual contracts can be another tool rather than a replacement for spot Bitcoin.

A practical approach is:

• Build long-term wealth by accumulating spot Bitcoin.

• Use the Money Flow stages (Stage 1 accumulation, Stage 2 breakout, Stage 3 distribution, Stage 4 decline) to identify higher-probability setups.

• Use perpetual contracts selectively for shorter-term trades or hedges, with disciplined position sizing and defined risk.

Perpetuals can increase opportunity, but they also increase risk. Many experienced traders use low leverage—or none at all—because preserving capital is often more important than maximizing returns.

If you would like to start trading with perpetual contracts on dozens of assets from gold, oil, to Bitcoin click here to get started.

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₿ Bitcoin Market Update

June 28, 2026

Afternoon MFG,

Bitcoin has had a rough couple of weeks.

After failing to hold its breakout above $66,000, sellers regained control and pushed Bitcoin back below the psychologically important $60,000 level. The move accelerated after the Federal Reserve’s first meeting under Chairman Kevin Warsh, where the Fed kept interest rates unchanged but adopted a more hawkish tone, signaling that rate cuts may not be coming anytime soon. (Bitcoin News⁠)

What’s Moving Bitcoin?

• ETF Outflows Continue
Institutional money continues to leave spot Bitcoin ETFs, although the pace of selling has slowed compared to earlier this month. Large redemptions from BlackRock’s IBIT and ARK’s ARKB have weighed on sentiment, while Fidelity has continued to see modest inflows. (CoinNews⁠)

• Higher Interest Rates Are Hurting Risk Assets
The market is beginning to accept that higher interest rates may be here longer than expected. That has pressured growth stocks, AI names, and cryptocurrencies alike as investors become more defensive. (Bitcoin News⁠)

• Long-Term Holders Aren’t Selling
While short-term traders have been shaken out, blockchain data suggests long-term Bitcoin holders continue to accumulate despite the recent correction. That’s often a positive sign during bear phases. (The Economic Times⁠)

GP’s Take

Nothing has changed about my approach.

The recent breakout failed, and all of our major Money Flow indicators have turned bearish. Until Bitcoin proves otherwise, I have no interest in fighting the trend.

The level I’m watching is $58,000.

If buyers can defend that area, it could become the foundation for a new Stage 2 breakout later this summer.

If not, we may need to be patient while the market finishes building a new base.

I’ll become much more interested on a strong move back above $60,400. That’s the level where I’ll begin looking to add perpetual contracts again.

Until then…

Cash is a position.

Sometimes the best trade is waiting for the market to come to you instead of chasing every move.

“Professional traders don’t get paid for being busy. They get paid for being patient.” — Gerald Peters - @fullauto11

“Spot Bitcoin builds wealth. Perpetual contracts trade volatility. Know which game you’re playing before you click the Buy button.”

— Gerald Peters - @fullauto11 | Text 1-936-661-7786