bitcoin prices are hovering around $70,000, bouncing off a critical dynamic support line evident on the daily chart. Although bulls have yet to break above $72,000 and surpass the March 2024 highs, traders are optimistic about what lies ahead.
Carrying x, an analyst x.com/CryptoJelleNL/status/1797876036635648225″ target=”_blank” rel=”nofollow”>believe The world's most valuable currency is preparing for a decisive break above local resistance levels and all-time highs around $74,000. In a post, the analyst notes that bitcoin has been consolidating, moving sideways, and even going down over the past three months since mid-March.
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If buyers are successful, the nearly 100-day consolidation could set the stage for prices to soar, ushering in a “next leg higher” that would likely take btc to $85,000. Still, even amid the optimism, traders should remain cautious.
<img decoding="async" class="size-full wp-image-611427" src="https://technicalterrence.com/wp-content/uploads/2024/06/Is-Bitcoin-ready-to-take-off-Analyst-sees-85K-as.jpg" alt="btc could recover after consolidating | Source: @CryptoJelleNL via x” width=”1024″ height=”844″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/06/Is-Bitcoin-ready-to-take-off-Analyst-sees-85K-as.jpg?w=1452 1452w, https://technicalterrence.com/wp-content/uploads/2024/06/Is-Bitcoin-ready-to-take-off-Analyst-sees-85K-as.jpg?w=460 460w, https://technicalterrence.com/wp-content/uploads/2024/06/Is-Bitcoin-ready-to-take-off-Analyst-sees-85K-as.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/06/Is-Bitcoin-ready-to-take-off-Analyst-sees-85K-as.jpg?w=860 860w, https://technicalterrence.com/wp-content/uploads/2024/06/Is-Bitcoin-ready-to-take-off-Analyst-sees-85K-as.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/06/Is-Bitcoin-ready-to-take-off-Analyst-sees-85K-as.jpg?w=1140 1140w” sizes=”(max-width: 1000px) 100vw, 1000px” loading=”lazy” data-recalc-dims=”1″/>btc could recover after consolidating | Source: @CryptoJelleNL via x
Technically, the bullish momentum has been fading. Even with the June 3 gains, the failure of buyers to confirm the May 20 gains is holding back the uptrend. So far, the upper level of $72,000 needs to be conquered to have any hope of further gains. At the lower end, support lies at $66,000.
x/2WUsK2Yr/”>x/2WUsK2Yr/” alt=”bitcoin price is in an upward trend on the daily chart | Source: BTCUSDT on Binance, TradingView” width=”1233″ height=”592″ loading=”lazy”/>bitcoin price is in an upward trend on the daily chart | Fountain: x/2WUsK2Yr/” target=”_blank”>BTCUSDT on Binance, TradingView
Still, the 20-day dynamic moving average is shaping up to be worthy support. Any breakout in either direction, preferably in line with Q1 2024 earnings, would be fundamentally driven.
Looking at the fundamental data coming out of the United States, the ground is being prepared for bullish buyers. The cooling of inflation and x.com/woonomic/status/1797798829007454603″ target=”_blank” rel=”nofollow”>upturn in M2 money supply could It hints that buyers are preparing.
The US Federal Reserve has closely monitored inflation, among other metrics. With inflation falling, the Federal Reserve could decide to cut interest rates, fueling a bull run as it did in 2021.
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Other key drivers would include the encouraging flow into spot bitcoin ETFs. As btc soared to March 2024 highs, inflows surged, driven primarily by institutional demand. After prices rose on May 20, inflows have gained momentum.
June 3, Lookonchain data x.com/lookonchain/status/1797658474115207241″ target=”_blank” rel=”nofollow”>revealed Those btc ETF spot issuers in the United States added 2,413 btc. Grayscale's GBTC dropped just 12 btc.
The launch of the Monochrome bitcoin ETF (IBTC) in Australia and a similar product in Hong Kong and around the world will only increase demand for btc. The recently launched IBTC spot ETF in Australia will directly hold btc, which will be in the custody of Coinbase.
