As crypto markets spark back into life, explore BTC price analysis and uncover a bullish shift in Bitcoin price action as price action rips past $70,000. The uptrend could continue throughout the summer months until September.
Bitcoin looked hopeless by early May 2024. BTC Prices unexpectedly slipped below $60,000 before fast dropping to as low as $56,500. The coin has since made a U-turn, correcting the obvious undervaluation on May 2.
The community is upbeat, with Bitcoin trading above $71,000 and approaching a liquidation line at $72,000.
$BTC rallied 75% in 63 days after the spot ETF was approved.
If $ETH follows the same trend (if approved), this would take it to $6,446 by July 23. pic.twitter.com/FfWg9VGUMx
— Miles Deutscher (@milesdeutscher) May 21, 2024
Most analysts expect buyers to add to their longs, extending gains from May 15. BTC is up double digits in the last week at spot rates, adding an impressive 18%. This month alone, the coin is up 25% and inches from conquering all-time highs of approximately $74,000.
Looking at the candlestick arrangement in the daily chart, there are hints that the bull run might continue throughout the Summer months of June through to September.
(BTCUSDT)
To illustrate, the bullish breakout on May 20 saw Bitcoin prices surge to fresh monthly highs. Since the bar is wide-ranging with decent trading volume, bulls are highly likely to extend gains in the weeks ahead.
From the chart, $60,000 is emerging as a strong support zone. The rejection of lower prices in the days before the May 15 surge cements this outlook that the bulls of Q1 2024 have control.
There are a couple of fundamental factors supporting this outlook. Last week, flows into spot Bitcoin ETFs soared to $950 million, the highest since March 2024.
Yesterday, Lookonchain data shows that all nine spot ETF issuers added 3,077 BTC, worth over $207 million. If sustained, this momentum could propel Bitcoin beyond expectations.
Additionally, the community expects the United States Federal Reserve to switch its monetary policy from hawkish to dovish. With inflation falling, the central bank’s efforts to combat raging price pressures have been successful.
If the Federal Reserve slashes interest rates in Q3 2024, BTC prices will likely benefit, rising even further from spot rates. With a more accommodative economy marked by relatively low interest rates, Bitcoin and other safe-haven assets like gold will be more appealing to investors.
Following its April 20 halving, Bitcoin is increasingly becoming a safe haven. Fewer coins are emitted, meaning BTC is increasingly scarce, attracting holders seeking to preserve their wealth.
New whales (mostly spot ETF issuers) are rapidly accumulating, as evidenced by the realized cap, which has been steadily rising since January 2024, when spot ETFs were approved. Simply put, the realized cap measures the value of BTC in circulation based on the prices at which it was purchased.
This scarcity is seen from the contraction of exchange Bitcoin reserves, and it’s this scarcity, combined with reducing supply post-Halving and increasing demand from spot ETF issuers, that weakens the bearish case for BTC price.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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