Bitcoin (BTC) has experienced a remarkable surge of over 60% since the beginning of the year, thanks to the introduction of exchange-traded funds (ETFs) in the U.S. and the anticipation of interest rate cuts by the Federal Reserve. The combination of on-chain, fundamental, and technical indicators suggests that Bitcoin may continue to gain momentum in June, with a potential price target of $75,000 by the end of the month. Let’s take a closer look at these indicators.
From a technical standpoint, Bitcoin’s path to $75,000 is supported by its symmetrical triangle pattern. This pattern is formed when the price consolidates between two converging trendlines, connecting a series of sequential peaks and troughs. In an uptrend, a symmetrical triangle formation typically signals a continuation of bullish momentum. The breakout occurs when the price surpasses the upper trendline, resulting in a potential price increase equivalent to the maximum distance between the upper and lower trendlines.
As of May 31, Bitcoin’s price was approaching the apex of the symmetrical triangle, where the two trendlines intersect. The cryptocurrency is now poised to break above the upper trendline, which could potentially propel its price towards $74,000-75,000 in June, depending on the exact breakout point. This breakout point is estimated to be around $69,000, coinciding with Bitcoin’s ascending trendline support.
In addition to the technical indicators, the resurgence of Bitcoin ETF buyers also contributes to the positive outlook for Bitcoin’s price. After reaching a new all-time high in early March, Bitcoin experienced a correction and consolidation phase as long-term holders sold a significant portion of their holdings. This created a supply overhang in the market. However, as sellers became exhausted and prices dropped, the market transitioned into a re-accumulation phase.
This shift is evident in the flows of Bitcoin ETFs. Throughout April, there was a net outflow of funds from these ETFs. However, as the market sell-off reached a local low of around $57,500, ETFs started to experience substantial net inflows. Last week, Bitcoin ETFs reported a remarkable net inflow of $242 million per day, indicating a resurgence in demand from buyers. This influx of buying pressure from ETFs outweighs the daily sell pressure from miners, ultimately contributing to the upward momentum of Bitcoin’s price.
Looking beyond Bitcoin, there is also potential for Ethereum ETFs to be approved in June. Analysts believe that United States spot Ether (ETH) ETFs could launch by late June, following a key filing update by BlackRock. The successful launch of Ethereum ETFs could set a positive precedent for Bitcoin ETFs, boosting investor confidence and driving increased demand in the cryptocurrency market. This further supports the possibility of Bitcoin reaching its symmetrical triangle breakout target of $75,000 in June.
It is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and analysis before making any investment decisions.