Bitcoin, known as BTC, is starting a new week battling against long-standing resistance following a surprising bout of volatility at the beginning of June.
The price action of BTC indicates a struggle between bulls and bears around the old 2021 all-time highs at $69,000. The question remains: who will emerge victorious?
The short-term market has been more unpredictable than ever, making June an interesting month for both viewing and trading. External factors, such as macroeconomic data from the United States, have shown the ability to quickly change the trajectory of cryptocurrencies. Additionally, moves made by whales to structure liquidity have prevented Bitcoin from overcoming the final resistance on its path to discovering a price above $74,000.
While this may be frustrating for many market participants, the days ahead are expected to bring more of the same catalysts. The U.S. is set to release significant inflation data throughout the week, while the Federal Reserve will hold its meeting to discuss potential interest rate changes.
Despite the challenges, there is hope as Bitcoin gradually solidifies various support and resistance levels on higher timeframes, a development that has not gone unnoticed.
As the battle continues within the current trading range, Cointelegraph delves deeper into the key topics surrounding BTC price action moving forward.
BTC Price: Rangebound with Potential for Change
Bitcoin had a relatively quiet weekend following unexpected volatility triggered by macro events during the last Wall Street trading session.
The focus remains on the $69,000 mark, representing Bitcoin’s old all-time highs from 2021. This trend continued into the new Asia session as indicated by data from Cointelegraph Markets Pro and TradingView.
With no significant breakout in either direction, liquidity began to consolidate around the spot price, setting the stage for potential volatility ahead.
Popular trader Skew noted in his latest analysis on X (formerly Twitter) that there was not much change in spot order books, with ask liquidity firming up around $70.5K – $71K and bid liquidity firming up around the low $68.5K – $68K.
Another trader, Daan Crypto Trades, highlighted the influence of the CME Group Bitcoin futures market closing price on the price action heading into the new week. He emphasized the importance of using this data to avoid getting caught up in choppy weekend trading.
Meanwhile, Michaël van de Poppe of MNTrading described BTC/USD as consolidating between two crucial levels, noting the significance of a breakout at $71.7K while remaining cautious during CPI week.
CPI Meets Fed Meeting in Crucial Macro Week for Crypto
The upcoming week is dominated by two key events: the Fed interest rate decision and the release of the Consumer Price Index (CPI) for May.
This potentially volatile combination could have a significant impact on risk assets. Last week’s U.S. employment data caused a stir by beating expectations, temporarily pushing BTC/USD down by nearly 2%.
Popular trader CrypNuevo outlined two likely scenarios for Bitcoin’s reaction to the incoming data, emphasizing the importance of recovering from last week’s NFP move and remaining cautious until the FOMC announcement.
Market expectations suggest that the FOMC will not cut rates this month, with potential changes expected to take place in the future. The data from CME Group’s FedWatch Tool indicates the probabilities of a rate cut.
June 13 marks another significant macro data day, with the U.S. releasing the Producer Price Index (PPI) and weekly jobless claims. Despite potential market fluctuations, historical data suggests that economic moves tend to be retraced over time.
BTC Weekly Close Nears Record High
The weekly close for BTC/USD was a significant milestone within the broader consolidation structure since the all-time highs of $73,800 in March.
At $69,630, the latest close was Bitcoin’s second-highest ever recorded, despite a last-minute dip over the weekend. Data from CoinGlass shows that Bitcoin gained 2.7% last week, with the monthly open acting as a key support level.
Daan Crypto Trades highlighted the importance of a weekly close above the 2021 highs of $69,000 as a positive indication of leaving the current price range behind.
Notable figures in the crypto community, such as Nunya Bizniz, discussed the 23% retracement BTC/USD experienced after March’s highs compared to previous cycles.
Bitcoin Resistance Flip Marks Historical Technical Feat
Analyst Rekt Capital expressed optimism for BTC price action despite the current consolidation phase. Analyzing monthly timeframes, he highlighted a significant resistance/support flip that signals a win for the ongoing bull market.
Bitcoin has successfully turned a major area of old resistance into a new major support level, a historic technical achievement according to Rekt Capital. Monthly timeframes show that the tide has turned in favor of the bulls, with Bitcoin consolidating in the Post-Halving Re-Accumulation Range.
Rekt Capital emphasized that while Bitcoin’s current sideways price action may take time to resolve, the overall uptrend remains intact.
Whales Seek Medium-Term Profits
Large-volume BTC investors, known as whales, are currently accumulating coins for potential medium-term profits. Unlike long-term investors, whales seek to capitalize on shorter-term gains.
Research from on-chain analytics platform CryptoQuant suggests that whale behavior has already impacted the market and is expected to intensify in the coming weeks. The recent return of long-dormant BTC to circulation indicates a distribution phase, according to CryptoQuant’s analysis.
As Bitcoin continues to navigate through a volatile market landscape, traders and investors must remain vigilant and conduct their own research to make informed decisions. Every investment and trading move carries risks that should be carefully considered.