As a seasoned crypto investor with a few years under my belt, I’ve seen my fair share of market volatility and price swings. Bitcoin’s current hovering around $70,000 is nothing new to me, but the optimistic outlook from analysts and fundamental data suggests that we might be on the cusp of another bull run.
The price of Bitcoin is currently fluctuating around the $70,000 mark, touching a significant support level as seen in the daily chart. Despite bulls failing to surpass the $72,000 threshold and reach new highs set in March 2021, traders remain hopeful about future developments.
Bitcoin Bulls In Charge: Analyst Targets $85,000
One analyst is of the opinion that Bitcoin, the world’s most prized digital coin, is gearing up for a significant leap beyond its current resistance levels and record highs, approximately at $74,000. The analyst penned down in a recent post that Bitcoin has been experiencing price fluctuations, moving laterally and even dipping slightly over the past three months since mid-March.
If purchasers are successful in their efforts, the prolonged period of price stability for nearly 100 days could pave the way for significant price surges, potentially pushing Bitcoin up to $85,000 and initiating a new upward trend. However, it’s essential to exercise caution even with this positive outlook.
The upward momentum has been weakening. Although there were price increases on June 3rd, these failed to build upon the advances seen in late May. For the uptrend to resume, the resistance level of $72,000 must be broken. Conversely, the support can be found at $66,000 on the downside.
As a researcher studying market trends, I’ve noticed that the 20-day moving average is proving to be a significant source of support. Should there be a breakout in either direction, ideally coinciding with Q1 2024 projections, it would primarily be influenced by underlying fundamental factors.
Inflation, Spot BTC ETF Inflows Fanning Demand
Based on recent fundamental data emerging from the US, there are signs pointing towards an optimistic outlook for investors. The deceleration of inflation and the increase in M2 money supply might be indicators of preparations by buyers to enter the market.
The U.S. Federal Reserve keeps a tight watch on inflation and other key indicators. If inflation continues to decrease, the Federal Reserve could consider reducing interest rates, potentially leading to another robust stock market rally similar to what occurred in 2021.
“Additional factors fueling the surge include the robust influx into Bitcoin spot ETFs. As Bitcoin reached new peaks in March 2024, investment poured in, primarily from institutional buyers. Since Bitcoin’s price broke above the $20,000 mark on May 20th, this trend has gained momentum.”
On June 3rd, data from Lookonchain indicated that US-based Bitcoin spot ETF providers acquired approximately 2,425 Bitcoins. In contrast, Grayscale’s GBTC saw a decrease of only around 12 Bitcoins.
As a crypto investor, I’m excited about the upcoming launch of the Monochrome Bitcoin ETF (IBTC) not only in Australia but also in Hong Kong and other global markets. This development is bound to heighten the demand for Bitcoin (BTC) as more investors gain access to this digital asset through regulated investment vehicles. In Australia, the IBTC spot ETF will be unique since it will physically hold BTC, ensuring a close link between the fund’s performance and the price of Bitcoin itself. This custody arrangement is being handled by Coinbase, further instilling trust and confidence in the product.
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2024-06-04 20:46