Bitcoin, in the United States, has risen over 60% since the beginning of the year as of May 2024, aided by capital inflows into newly launched exchange-traded funds and expectations of a Federal Reserve rate cut. According to a mix of on-chain, fundamental, and technical indicators, the benchmark cryptocurrency could witness further gains in June and potentially reach $75,000 by the end of the month.
Bitcoin Chart Analysis
From a technical perspective, Bitcoin’s potential to reach $75,000 comes from a triangle formation characterized by price consolidation between two converging trend lines connecting a series of successive peaks and troughs. Typically, a symmetrical triangle formation during an uptrend signals the continuation of the uptrend, and the price corrects when it 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 is now aiming 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 on the Bitcoin Front?
Bitcoin, reached an all-time high of $73,000 in early March. This increase coincided with long-term holders selling a significant portion of their assets, creating an oversupply that led to a period of correction and consolidation.
As prices fell and sellers were exhausted, the market gradually transitioned back into an accumulation phase. This shift is clearly seen in Bitcoin ETF flows, which experienced a net outflow process throughout April. When the market sold off to a local low around $57,500, ETF funds saw significant daily net outflows averaging $148 million.
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 daily natural selling pressure of $32 million from miners since the last Bitcoin halving event, this ETF buying pressure is nearly eight times higher.
