BTC price briefly returned to $70,000 after US markets opened but couldn’t stay there. This is not surprising because investors prefer to be more cautious before Fed announcements, especially after bad data. So, what are the current predictions for Bitcoin?
Cryptocurrency Commentary
Spot Bitcoin ETF has good news. In May, ETF issuers accumulated 29,592 BTC. This was the reserve growth resulting from net inflows. How many BTC did they collect between June 3-7? Exactly 25,729. This purchase in the first week of June exceeds two months of miner output.
Supply is surpassing demand, and BTC ETF inflows are beyond the net inflows of May. This is exciting. The SP500, which shares a positive correlation with cryptocurrencies, is targeting the 5,500 level.
DXY fell below the rising channel on June 3. Bears couldn’t pull DXY below 104 and moved it to 105. If the 105.75 and 106.5 levels can’t be surpassed, we might see a return to 104. As SP500 rises, DXY should weaken, and Fed comments on Wednesday could trigger this.
Bitcoin (BTC)
The European Central Bank stopped talking and took action by making its first rate cut. Now it’s the turn of other countries. Canada took the expected step, and many countries are now reversing global tightening. It’s not very logical for the US to insist on tight policy while all other countries are making cuts.
Perhaps the US will choose to protect its economy by extending the path to the 2% target and gradually easing? Returning to the Bitcoin price route, bulls remained strong at the 20-day EMA. Entries at $68,726 motivated strong demand at lower levels, and just a moment ago, BTC was testing $70,000.
If support is lost, a new drop to the SMA50, which is $65,906, could occur. A break from here would mean sales accelerating to $60,000. In the dream scenario of the bulls, clearing the obstacle between $72,000 and $73,777 would lead the journey to continue towards $80,000 and $88,000.
