Bitcoin has demonstrated remarkable stability, maintaining price levels above $60,550 over the past four months despite volatility in the crypto market. This can be interpreted as a sign of confidence in the market and investors seeing long-term potential. However, given the uncertainties and possible risks about the future, there are differing opinions on whether Bitcoin’s current levels are a buying opportunity or a harbinger of a deeper correction.
ETF Status
Recent price movements have also been marked by cash flows in spot Bitcoin exchange-traded funds (ETFs) in the US. For example, Fidelity’s FBTC and Bitwise-backed BITB have been notable for significant cash inflows, while Grayscale’s GBTC reported a recent cash outflow. This could be interpreted as an indication that institutional investors’ interest in the market and their decisions could affect Bitcoin’s short-term performance.
Analyzing the factors behind the stability of Bitcoin’s price, experts offer various scenarios about the future direction of the market. While some argue that global economic uncertainties and regulatory risks could negatively affect Bitcoin’s value, others argue that current levels could present a buying opportunity due to its long-term potential.
CryptoQuant’s Gustavo Faria suggests that Bitcoin’s current market structure points to a potential local bottom. Analyzing recent data, CryptoQuant observed that short-term Bitcoin holders are experiencing negative average profitability, a common indicator of a local bottom. Additionally, the Bitcoin futures market has seen a decrease of approximately $3 billion in open interest over the past three weeks, with funding rates near zero.
Additionally, investors are eagerly awaiting important US economic data that will provide a clearer picture of the economic outlook. US GDP and unemployment claims data will be released on Thursday, followed by inflation data (PCE) on Friday. CryptoQuant said the following on this subject:
“Given the uncertainty regarding the future of American monetary policy, US macroeconomic data has been an important factor affecting price movement in recent months, influencing investors’ risk appetite.”
NEWS CONTINUES BELOW
What Awaits the Bitcoin Price?
Bitcoin’s price could close June at $61,000. However, it could drop to $50,000, closing consistently below $60,000 in the coming weeks. On the upside, the weekly Relative Strength Index (RSI) is approaching the 50 percent level, which could signal a recovery in the market.
Experts are analyzing the situation, but what are your thoughts? Will Bitcoin enter a recovery period or move towards 50 thousand dollars?
You can access live market data here.
