Bitcoin in the US has surged over 60% since the beginning of the year by May 2024, aided by capital inflows into newly launched exchange-traded funds and expectations of a Federal Reserve interest rate cut. Based on a mix of on-chain, fundamental, and technical indicators, the benchmark cryptocurrency could witness further gains in June, potentially reaching $75,000 by the end of the month.
Bitcoin Chart Analysis
From a technical perspective, Bitcoin’s potential to reach $75,000 stems from a triangle formation characterized by price consolidation between two converging trend lines connecting a series of consecutive peaks and troughs. Typically, a symmetrical triangle formation during an uptrend signals the continuation of the upward movement, correcting when the price breaks above the upper trend line and rises to the maximum distance between the upper and lower trend lines.
As of May 31, Bitcoin’s price was approaching the apex of the triangle where the two trend lines converge. The cryptocurrency now aims for a breakout above the upper trend line, which, according to the aforementioned technical rule, could push its price towards $74,000-$75,000 in June depending on the breakout point.
What’s Happening with Bitcoin?
Bitcoin reached an all-time high of $73,000 in early March. This surge coincided with long-term holders selling a significant portion of their assets, creating an oversupply that led to a correction and consolidation period.
As prices fell and sellers exhausted, the market gradually transitioned back into an accumulation phase. This shift is evident in Bitcoin ETF flows, which saw a net outflow process throughout April. When the market sold off to a local low around $57,500, ETF funds experienced significant net outflows averaging $148 million daily.
Last week, Bitcoin ETF funds reported a notable net inflow of $242 million per day, indicating a resurgence in demand on the buyer side. Considering the natural daily selling pressure of $32 million from miners since the last Bitcoin halving event, this ETF buying pressure is nearly eight times higher.
