The Bitcoin price rose by 11% in May. The price of the first cryptocurrency in the first days of summer is $67k–$71k, highlighting the Bitcoin Price Prediction trends.
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The most significant information affecting the cryptocurrency rates in June will be the macroeconomic indicators in the United States. First of all, these comprise of data on employment rates, inflation, meeting of the Federal Reserve and decision on interest rates, and GDP figures.
An analyst says if these indicators show declining prices and slowing economic growth, risk assets will receive further support. Investors are looking for signs of an early rate cut, possibly as soon as September. However, inflation and falling unemployment levels will not allow crypto assets to rise much higher, ranging in current levels for a while.
Bitcoin Price Prediction: Key Factors and Technical Analysis
The effect of US inflation rate is still the main driver of the crypto market, according to the founder of TerraCrypto Nikita Vassev. The level that is of paramount interest to the market participants is 3. 3%. If inflation rate drops below this figure, it will indicate positive trends on the American market and expectations of a rate cut, which attracts investors. The next consumer price data that is expected to be released by the US is on the 12th of June.
According to the seasonally adjusted data, consumer price increase in April amounted to 3. 4%; thus, a 0. 1 per cent of inflation rate of the previous month is quite achievable. However, if this does not occur, then the bust could see investors fleeing from exchange-traded bitcoin funds (ETFs) and selling their bitcoin assets, thereby leading to a drop in the price.
To sum up, the article describes possible scenarios for Bitcoin Price Prediction in the near future, based on the analysis of the digital currency market and existing trends.
Indeed, from a technical perspective, there is a clear resistance line on the daily chart of the bitcoin price. Today, the price is under pressure by the trendline and there is a decline in sales.
A bullish breakout above the resistance line on the chart usually gives traders a sign of an impending impulsive move up of the price. This pattern is marked by the price compressing from below. The highs are still at the same level but the lows rise and this force the price upwards the upper Bollinger Band. Then, a price impulse to the upside follows, violating the counter-trend resistance.
Bitcoin Price Prediction
On June 3, there was an attempt to go above $70k. Once the price breaches this level, we should see an aggressive upward movement, likely without any retrace. The liquidation of short positions will hasten the upward movement, aiming to create a new all-time high and surpass $80k. Consequently, this trendline should be watched for a breakout.
Bitcoin Price Forecast: Potential Highs and Corrections
I predict the bitcoin to reach a new historical high of $74,000 with an opportunity of crossing the $76,000 mark. Following this, it will be possible to evaluate the potential for a more profound correction in the benchmark.
The given chart is a clear indication that the much-needed correction in the price of the digital currency will occur if the price of bitcoin returns to the range formed in March, according to the analyst. Conversely, a steady increase beyond $76,000 could lead to $100,000 by year-end, possibly in the fourth quarter. This requires a conducive US monetary policy and significantly increased traffic into crypto funds compared to the past two months. Under these conditions, the chances of attaining such a crucial figure as $100k for one bitcoin will significantly improve.
If there are no other major events, it is quite probable that bitcoin will remain within the $68k – 71k range in June, according to Vassev. Potential reductions in the inflation rate in the United States may contribute to the cryptocurrency’s price increase.
“If anything can make the price drop, it will be the beginning of payouts to the people who suffered from the Mt. Gox exchange’s bankruptcy,” Vassev advances the idea. “People who have been waiting for years to get their compensation might decide to sell their bitcoins as the cryptocurrency is currently experiencing high popularity.
The Impact of Mt. Gox on Bitcoin
Mt. Gox was an exchange company engaged in the buying and selling of virtual currency, which was established in 2010 and shut down in 2014 after being hacked multiple times. At one point, the exchange processed nearly 70% of all Bitcoin transactions. During the 2014 hack, Mt. Gox lost 850,000 bitcoins, which are worth over $57 billion at current rates.
For this Bitcoin Price Prediction to hold, participants must watch upcoming economic data and Mt. Gox payouts’ potential impacts.
The exchange’s collapse led to seven and a half years of legal battles before creating a compensation plan in 2021. Clients can recover only part of the initial sum, receiving 142 thousand bitcoins, 143 thousand Bitcoin Cash (BCH) coins, and 69 billion yen. They expect to complete the payments before the end of this financial year, with a deadline of October 31, 2024.
According to Vassev, the $63k–65k area provides a support line that should prevent the bitcoin price from going lower. Despite the volatility of cryptocurrencies, the overall trend is positive in the medium term, Kovalsky adds. Market participants are pinning their hopes on the start of the key interest rate reduction in the third quarter and the outcome of the US presidential elections.
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