By CoinGape
The approval of Ethereum ETFs in May more than renewed investor interest in the crypto market, it ignited a hunger for recovery and continued splendid performance toward the year-end. Following the news, Bitcoin price jumped to $72,000 but corrected, testing support at $67,000.
Ethereum price reacted positively in tandem with BTC and other leading altcoins like Solana and XRP. The largest altcoin hovered at $3,830 during US business hours on Monday.
Bitcoin price also showed potential to revive the uptrend, as it had reclaimed climbed above $70,000. Should support be established at this level, traders would shift their outlook for the week to the all-time high of $73,837 based on CoinGecko data and subsequently to a new historical high of $80,000.
Several factors are behind the reinvigorated uptrend at the start of the new week, including increasing digital fund inflows. This article aims to delve into the reasons backing the potential rally in June.
1. Weekly Digital Asset Fund Flows Increase 4 Weeks In A Row
According to the weekly digital asset fund flows report by CoinShares, inflows into digital investment products continued on a bullish streak for four consecutive weeks.
Cumulative fund inflows reached $185 million last week, bringing the total inflows to $2 billion in May, while the year-to-date inflows hit the $15 billion market.
In the report, Bitcoin charged ahead with $148 million, “while short-bitcoin saw another week of outflows totaling US$3.5m.” The second-largest cryptocurrency, Ethereum also witnessed a surge in the inflow volume to $33.5 million in the wake of the SEC’s approval of spot ETFs. Ethereum ETFs are expected to start trading in July, 2024.
2. Bitcoin Futures Market Open Interest On The Rise
The derivatives market open interest (OI) has sustained a remarkable growth in the open interest since January, in the process improving Bitcoin’s bullish outlook. Based on data from Coinglass, the OI now holds at $38.8 billion, repressing a massive increase from $17.2 billion on January 1.
The Chicago Mercantile Exchange (CME) boasts $10.5 billion, topping other derivative platforms. Binance exchange comes second with $8.12 billion while Bybit closes the top three with $5.22 billion.
Rising open interest hinges on positive sentiment in the market. Despite the doldrums with Bitcoin oscillating between $67,000 and $70,000 for almost two weeks, investors are adamant that the trend will regain momentum in the next weeks, and months.
3. Bitcoin Price Presents Solid Technicals
Bitcoin is on the verge of an immediate breakout above the $70,000 mark. The renewed bullish comes after BTC tested and rebounded from support/resistance at the descending trend line illustrated on the daily chart.
The 20-day Exponential Moving Average (EMA) in blue currently at $67,430 reinforces the above support area, creating a confluence.
Another bullish signal is highly likely from the Moving Average Convergence Divergence (MACD) indicator. To validate this call to buy BTC, the blue MACD line must cross above the orange signal line.
Despite the solid technical structure, Bitcoin is required to close the day above $70,000 as the second confirmation of the uptrend. Otherwise, the dance between this level and support at $67,000 may continue this week.
Nevertheless, Bitcoin price prediction reveals that the coin has the potential to reach new all-time highs and perhaps continue with therapy to $100,000 in June and other months in the future buoyed by positive digital fund inflows, ETFs, and the elections in the US.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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