Markets
3 Factors Behind Bitcoin Price Rise in June
The approval of Ethereum ETFs in May more than renewed investor interest in the crypto market, it ignited a thirst for recovery and continued splendid performance towards the end of the year. Following the news, Bitcoin Price surged to $72,000 but corrected, testing support at $67,000.
Ethereum price reacted positively in tandem with BTC and other leading altcoins like Solana and XRP. The largest altcoin was hovering at $3,830 during US business hours on Monday.
Bitcoin price also showed the potential to restart the uptrend as it surged above $70,000. If support were established at this level, traders would change their outlook for the week to the all-time high of $73,837, based on CoinGecko data and subsequently to a new all-time high of $80,000.
Several factors are driving the reinvigorated uptrend at the start of the new week, including increased digital fund inflows. This article aims to delve deeper into the reasons supporting the potential June rally.
1. Weekly digital asset fund flows increase 4 weeks in a row
According to the weekly digital asset fund flow report of Coin Sharesinflows into digital investment products continued their upward trend for four consecutive weeks.
Cumulative fund inflows reached $185 million last week, bringing total inflows to $2 billion in May, while year-to-date inflows reached the $15 billion mark.
In the report, Bitcoin took in $148 million, “while short-term bitcoin saw another week of outflows totaling $3.5 million.” The second largest cryptocurrency, Ethereum also saw an increase in inflow volume to $33.5 million following the SEC’s approval of spot ETFs. Ethereum ETFs are expected to begin trading in July 2024.
Digital Funds Flow by Asset | Coin Shares
2. Bitcoin Futures Market Open Interest Rising
The derivatives market’s open interest (OI) has supported remarkable growth in open interest since January, improving Bitcoin’s bullish outlook. Based on data from Change machineIO now holds $38.8 billion, suppressing a massive increase from $17.2 billion on January 1.
The Chicago Mercantile Exchange (CME) claims $10.5 billion, surpassing other derivatives platforms. Exchange Binance comes in second with $8.12 billion, while Bybit closes the top three with $5.22 billion.
Bitcoin OI Statistics | Change machine
Raising open interest rates depends on positive market sentiment. Despite Bitcoin’s slump hovering between $67,000 and $70,000 for almost two weeks, investors are adamant that the trend will regain momentum in the coming weeks and months.
3. Bitcoin Price Shows Strong Technical Characteristics
Bitcoin is poised to surpass the $70,000 mark immediately. The renewed uptrend comes after BTC tested and rebounded from support/resistance at the descending trendline shown on the daily chart.
The 20-day exponential moving average (EMA) in blue, currently at $67,430, reinforces the support zone above, creating a confluence.
Another bullish signal is very likely from the Moving Average Convergence Divergence (MACD) indicator. To validate this call to buy BTC, the blue MACD line must move above the orange signal line.
Bitcoin Price Chart | Commercial view
Despite a solid technical structure, Bitcoin is bound to close the day above $70,000 as a second confirmation of the uptrend. Otherwise, the dance between this level and support at $67,000 could continue this week.
Nevertheless, Bitcoin Price Prediction reveals that the coin has the potential to reach new all-time highs and perhaps continue its treatment up to $100,000 in June and other months to come, supported by positive digital inflows, AND Fand elections in the United States.
Related Articles