3 Indicators Predicting Bitcoin Surge to $75K in June

Bitcoin has experienced a substantial rise of over 60% in its value from the start of the year up to May 2024. This growth has been driven by substantial investments in the newly-introduced U.S.-based exchange-traded funds (ETFs) for Bitcoin and the anticipation of interest rate reductions by the Federal Reserve. Indicators from on-chain data, fundamental analysis, and technical charts suggest that Bitcoin’s value could increase even further in June, potentially hitting $75,000 by the end of the month. Let’s explore the details of these indicators to understand the forces at play.

From a technical analysis standpoint, Bitcoin appears to be on the verge of a breakout from a symmetrical triangle pattern. This pattern typically occurs when the price oscillates within two converging trendlines that connect a series of peaks and troughs. In an uptrend, the formation of a symmetrical triangle usually indicates the continuation of bullish momentum. The breakout happens when the price surpasses the upper trendline, typically resulting in a rise equivalent to the maximum vertical distance between the two trendlines.

As of May 31, Bitcoin’s price was closing in on the apex of this symmetrical triangle, where the two trendlines converge. The cryptocurrency is now poised to break through the upper trendline. Following the technical analysis rules, this breakout could propel Bitcoin’s price to the range of $74,000-75,000 in June, depending on the exact breakout point. This crucial breaking point might be around $69,000, aligning with Bitcoin’s current ascending trendline support.

A significant factor contributing to Bitcoin’s recent price movement is the renewed interest in Bitcoin ETFs. Bitcoin surpassed its previous record by reaching nearly $73,000 in early March. This rise occurred as long-term holders sold off large volumes of their holdings, resulting in an excess supply and a subsequent correction and price consolidation period. As the prices fell and selling pressure decreased, the market gradually entered a re-accumulation phase.

This shift is clearly reflected in the Bitcoin ETF flows, which underwent a phase of net outflows throughout April. During a market decline that reached a local low of approximately $57,500, the ETFs experienced considerable net outflows, averaging -$148 million per day. This phase marked a type of micro-capitulation. The trend has dramatically reversed since then, with Bitcoin ETFs reporting an impressive net inflow of $242 million per day last week. This surge in demand from ETFs significantly outweighs the usual daily sell pressure from miners, which has been around $32 million since the recent Bitcoin halving.

The influence of these ETFs can’t be overstated, as their buy pressure is nearly eight times greater than the sell pressure from miners, suggesting a strong potential for continued price increases in Bitcoin well into June. This renewed demand from ETF buyers is playing a crucial role in the cryptocurrency’s ongoing price surge.

In addition to Bitcoin’s ETF-related developments, there’s also a possibility of Ethereum ETFs getting approved in June, which could further influence Bitcoin’s trajectory. Analysts have pointed out that spot Ether (ETH) exchange-traded funds (ETFs) in the United States could be launched by the end of June following an important filing update by BlackRock on May 29. BlackRock updated its Form S-1 for its iShares Ethereum Trust (ETHA) with the Securities and Exchange Commission, a necessary step toward launching the ETF. This move came nearly a week after the regulator approved BlackRock’s 19b-4 filing.

Bloomberg ETF analyst Eric Balchunas highlighted this development as a positive sign, suggesting that more approvals might follow soon. The successful launch of Ethereum ETFs could create a beneficial precedent for Bitcoin ETFs, potentially boosting investor confidence and increasing demand in the cryptocurrency market.

As a result, the potential approval and launch of Ethereum ETFs could further amplify Bitcoin’s momentum, helping it reach its symmetrical triangle breakout target of $75,000 in June. This scenario underscores the interconnected nature of the cryptocurrency market, where developments in one segment can significantly impact another.

Bitcoin’s recent price surge is backed by technical indicators suggesting further gains, substantial ETF inflows indicating robust buy-side demand, and the potential ripple effects of Ethereum ETF approvals. These factors combined place Bitcoin in a strong position to continue its rally, potentially reaching new heights as market dynamics evolve. Investors and market participants will be closely watching these developments as June unfolds.