Key Points
- Bitcoin’s value has risen over 60% YTD due to capital inflows into its ETFs and anticipated Federal Reserve interest rate cuts.
- Bitcoin could potentially reach $75,000 by the end of June, based on various indicators.
Bitcoin, the benchmark cryptocurrency, has seen a significant surge in 2024, with a rise of over 60% year-to-date as of May. This increase has been largely driven by capital inflows into its newly launched exchange-traded funds (ETFs) in the U.S. and the anticipation of interest rate cuts by the Federal Reserve. A combination of on-chain, fundamental, and technical indicators suggest that Bitcoin may see further gains in June, potentially reaching $75,000 by the end of the month.
Technical Indicators Point to Possible Breakout
From a technical standpoint, Bitcoin’s potential to reach $75,000 is linked to its prevailing symmetrical triangle pattern. This pattern is characterized by price consolidation between two converging trendlines that connect a series of sequential peaks and troughs. A symmetrical triangle formation during an uptrend usually signals a bullish continuation, which resolves when the price breaks above the upper trendline and rises by as much as the maximum distance between the upper and lower trendlines.
As of May 31, Bitcoin’s price was nearing the point where the triangle’s two trendlines converge. This could lead to a break above the upper trendline, which could propel its price towards $74,000-$75,000 in June, depending on the point of breakout.
Bitcoin ETF Inflows Indicate Positive Momentum
Bitcoin hit a new all-time high of approximately $73,000 in early March, which was accompanied by long-term holders selling a significant volume of their holdings. This led to a supply overhang that resulted in a correction and consolidation period. However, as prices dropped and sellers became exhausted, the market transitioned into a re-accumulation phase.
This shift is reflected in Bitcoin ETF flows, which experienced a period of net outflows throughout April. However, this trend has since reversed, with Bitcoin ETFs reporting a remarkable net inflow of $242 million per day last week. This indicates a resurgence in buy-side demand, and suggests that Bitcoin’s price is well-positioned to continue its rally into June.
Potential Approval of Ethereum ETFs in June
Analysts suggest that U.S. spot Ether (ETH) exchange-traded funds (ETFs) have a “legit possibility” of launching by late June, following a key filing update by BlackRock. The successful launch of Ethereum ETFs could set a positive precedent for Bitcoin ETFs, potentially boosting investor confidence and increasing demand in the cryptocurrency market. This could further enable Bitcoin to achieve its symmetrical triangle breakout target of $75,000 in June.
