Bitcoin Battles 2021 Highs: Will Bulls Break the $69K Barrier?
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2024-06-10 11:04
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Bitcoin starts a new week wrestling with its old 2021 all-time high of $69,000. This marks a crucial resistance level as the price action shows a battle between bulls and bears. Recent volatility in June has made trading interesting yet unpredictable. U.S. macroeconomic data has shown its power to flip Bitcoin’s trajectory swiftly.

 

Quick Take 

  • Bitcoin is currently challenging its 2021 all-time high of $69,000, facing significant resistance at this level.

  • U.S. macroeconomic data and Federal Reserve decisions are driving considerable volatility in Bitcoin's price.

  • This week’s Consumer Price Index (CPI) release and Federal Reserve meeting are expected to significantly influence Bitcoin's market dynamics.

  • Bitcoin ETFs have accumulated over 1 million BTC, highlighting strong interest from institutional investors.

  • Bitcoin whales are actively re-accumulating BTC, indicating expectations of medium-term price increases.

BTC Price Range Struggle

BTC/USDT price chart | Source: KuCoin

 

The $69,000 mark has become a focal point in the market. Data from Cointelegraph Markets Pro and TradingView indicates that Bitcoin’s price has been stuck in this range, with liquidity thickening around this spot price. Monitoring resources like CoinGlass suggesta potential for more volatility.

 

Market Reactions and Predictions

Popular trader Skew noted liquidity firming up around $70.5K to $71K and bid liquidity around $68K to $68.5K. Another trader, Daan Crypto Trades, pointed out the CME Group Bitcoin futures market’s closing price guiding Bitcoin’s price into the new week. He emphasized that the price action remains “as usual” around it.

 

Michaël van de Poppe, founder and CEO of MNTrading, described Bitcoin as “consolidating between the two crucial levels.” He stated that breaking out at $71.7K would be significant, but it’s wise to remain conservative during CPI week.

 

Key Macro Events

This week, two major macro events will dominate the landscape: the Fed’s interest rate decision and the May Consumer Price Index (CPI) release. Both are set to happen on the same day, June 13. The Kobeissi Letter highlighted the importance of this Fed meeting, with all eyes on Fed guidance.

 

Last week’s U.S. employment data caused a stir, briefly sending BTC/USD down nearly 2%. Popular trader CrypNuevo outlined two potential scenarios for Bitcoin’s reaction to this week’s data. The market believes that the Fed will not cut rates this month, but future meetings could see changes.

 

Whale and ETF Activity

Bitcoin whales are re-accumulating BTC for medium-term profits. Research from CryptoQuant’s Cauê Oliveira shows that large-volume BTC investors are loading up on coins. This pattern of accumulation and distribution directly impacts pricing.

 

Additionally, Bitcoin exchange-traded funds (ETFs) have shown significant activity. In the first week of June, U.S. Bitcoin ETFs bought 25,729 BTC, nearly eight times more than the 3,150 BTC mined in the same period. This inflow is the biggest since mid-March when Bitcoin hit its current all-time high of $73,679.

 

Michael Saylor, Chairman of MicroStrategy, highlighted that 34 Spot Bitcoin ETFs now hold over one million BTC. This milestone marks a huge achievement in the cryptocurrency market, indicating strong institutional and retail investor interest.

 

Weekly Close and Future Prospects

The latest weekly close for BTC/USD was significant, being the second-highest ever recorded at $69,630. Despite a last-minute dip into the weekend, buyers managed to reverse some of the losses. Daan Crypto Trades suggested that a weekly close above $69,000 would be a good start to leaving this price range behind.

 

Rekt Capital, a popular trader and analyst, pointed out that Bitcoin has turned a major resistance area into new support on monthly timeframes. This resistance zone between $58,600 and $61,300, which defeated bulls in 2021, now acts in their favor.

 

Conclusion

Bitcoin continues to face a significant resistance level at $69,000, creating a tug-of-war between bulls and bears. This week’s macro events, particularly the Fed’s interest rate decision and the CPI release, will play a crucial role in determining Bitcoin’s short-term future. Meanwhile, the strong institutional interest in Bitcoin, evidenced by significant ETF inflows and whale activity, provides a bullish outlook for the medium term.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.
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