Bitcoin (BTC) is putting pressure on key resistance levels as the month of May comes to a close. The price of BTC is struggling to break through old all-time highs, leaving investors uncertain about whether it will reach $69,000 by June. Memorial Day in the United States has resulted in a quiet start to the week, with institutional activity expected to pick up on May 28 when macroeconomic catalysts, such as U.S. data prints, are released. Bitcoin has been consolidating below its all-time highs for over two months, and it remains unclear when this consolidation will be resolved. While there are optimistic price predictions circulating, there are also concerns about a deeper retracement. As the market reaches a critical point, it is important to analyze the factors that could potentially influence its movement.
Over the weekend, Bitcoin briefly surpassed $69,000 before retracing after the weekly close. This move allowed Bitcoin to close the latest gap in the CME Group Bitcoin futures markets, even though the U.S. was observing a holiday. The weekly close at around $68,500 was the strongest since the beginning of April. Traders are now hoping to turn $69,000 into solid support, as this level has proven to be a resistance level in the past. The latest data from CoinGlass shows that there is significant liquidity built up around the current spot price, leaving traders uncertain about which levels will be taken first.
The direction in which Bitcoin will move once it leaves its current range is a major concern for market observers. While there is a consensus that Bitcoin will break to the upside, there is debate about how high the market will go. Some analysts are predicting a price of $95,000 in June and even $150,000 by the end of the year. These predictions are supported by historical price cycles and the current consolidation phase below all-time highs. However, there are still some analysts who believe that a larger correction is possible, with a target around $60,000.
The recent Bitcoin halving is still considered to be a relevant price catalyst, despite having occurred last month. Bitcoin is still in a post-halving re-accumulation phase, which historically lasts for up to 160 days. The longer Bitcoin consolidates during this phase, the better it is for the price. Once this phase is complete, upside continuation is expected, with a price target of approximately $150,000.
In terms of macroeconomic data, the end of the week will bring important U.S. data prints, including the Producer Price Index (PCE). The market is cautious about risk assets benefiting from loosening Fed policy, as interest rate cuts are not expected until September or later. However, U.S. stocks continue to reach all-time highs. The Kobeissi Letter acknowledges the potential for mean reversion lower in the stock market but expects any downside to be a pause in the bull market. Mosaic Asset predicts an upside breakout for BTC/USD and is closely monitoring Bitcoin and crypto mining stocks for confirmation of the bull market.
Bitcoin whales, the largest investors in the market, have been active as the price of BTC has remained near all-time highs. Data shows that whale addresses have been buying Bitcoin at an unprecedented rate, with the balance of whale addresses active within the last 24 hours reaching nearly half a million BTC. This indicates strong demand for Bitcoin and suggests that the market is stabilizing after a period of deceleration since March.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make their own decisions when it comes to investing in Bitcoin.