Bitcoin (BTC) has experienced a remarkable surge of over 60% since the beginning of the year until May 2024. This growth can be attributed to the introduction of exchange-traded funds (ETFs) in the United States and the anticipation of interest rate cuts by the Federal Reserve. Based on various indicators, including on-chain, fundamental, and technical factors, it is possible that the leading cryptocurrency will continue to see gains in June, potentially reaching $75,000 by the end of the month. Let’s delve into these indicators in more detail.
From a technical standpoint, Bitcoin’s potential to reach $75,000 is supported by its current symmetrical triangle pattern. This pattern is characterized by the consolidation of prices between two converging trendlines that connect a series of sequential peaks and troughs. Typically, the formation of a symmetrical triangle during an uptrend indicates a bullish continuation, with the price breaking above the upper trendline and rising by the maximum distance between the upper and lower trendlines.
As of May 31, Bitcoin’s price was approaching the apex of the triangle, where the two trendlines converge. The cryptocurrency is now aiming to break above the upper trendline, which, according to the technical rule mentioned earlier, could potentially drive the price towards $74,000-75,000 in June, depending on the breakout point. This breakout point is estimated to be around $69,000, which coincides with Bitcoin’s ongoing ascending trendline support.
Another factor contributing to Bitcoin’s upward momentum is the return of buyers in the Bitcoin ETF market. In early March, Bitcoin reached a new all-time high of approximately $73,000. However, this surge was accompanied by long-term holders selling a significant portion of their holdings, resulting in a supply overhang and subsequent correction and consolidation phase.
During this period, Bitcoin ETFs experienced net outflows, indicating a decrease in demand. However, as prices dropped and sellers became exhausted, the market transitioned into a re-accumulation phase. This shift is evident in the recent flows of Bitcoin ETFs, which saw a significant increase in net inflows. Last week alone, Bitcoin ETFs reported a remarkable net inflow of $242 million per day, signifying a resurgence in buy-side demand. This influx of buying pressure from ETFs outweighs the natural daily sell pressure from miners, thereby highlighting the substantial impact of ETFs on the market.
Looking ahead, there is a possibility of Ethereum ETFs being approved in June. Analysts believe that United States spot Ether (ETH) ETFs have a “legit possibility” of launching by late June, especially after BlackRock’s recent filing update. BlackRock updated its Form S-1 for its iShares Ethereum Trust (ETHA) with the Securities and Exchange Commission, which is a crucial step towards launching an ETF. The successful approval and launch of Ethereum ETFs could set a positive precedent for Bitcoin ETFs, potentially bolstering investor confidence and increasing demand in the cryptocurrency market.
It’s important to note that this article does not provide investment advice or recommendations. As with any investment or trading decision, there are risks involved, and readers should conduct their own research before making any decisions.