Bitcoin Bulls In Charge: Analyst Targets $85,000

Bitcoin prices are hovering near $70,000, bouncing from a critical dynamic support line, evident in the daily chart.

Bitcoin prices are hovering around the critical support line on the daily chart, as traders anticipate the next breakout. Despite attempts to breach $72,000 and reach March 2024 highs, BTC prices have been consolidating in recent weeks.

One analyst, followed by over 150,000 traders on TradingView, suggests that Bitcoin prices are preparing for a breakout past local resistance levels and all-time highs at around $74,000. In an analysis on June 3, the analyst observed that BTC has been consolidating for nearly 100 days.

Bitcoin prices are hovering around a critical support line on the daily chart, as traders anticipate the next breakout. Despite attempts to breach $72,000 and reach March 2024 highs, BTC prices have been consolidating in recent weeks.

One analyst, followed by over 150,000 traders on Trading View, suggests that Bitcoin prices are preparing for a breakout past local resistance levels and all-time highs at around $74,000. In an analysis on June 3, the analyst observed that BTC has been consolidating for nearly 100 days.

In their view, if buyers can push prices above March 2024 highs, the next leg higher will likely take BTC to $85,000. However, despite the optimism, the analyst cautions traders to be prepared for a breakout in either direction.

Technically, the momentum to the upside has fizzled out. Despite gains on June 3, buyers failed to confirm the gains of May 20, slowing down the uptrend. So far, the $72,000 level on the upper hand must be conquered for any hopes of further gains. On the lower end, support lies at $66,000.

However, the dynamic 20-day moving average is emerging as a worthy support. Any breakout in either direction, most preferably in alignment with Q1 2024 gains, would be fundamentally driven.

Bitcoin prices have been consolidating in 2024, following a strong rally in 2021 and early 2023 that saw BTC prices reach all-time highs above $74,000. After failing to breach $72,000 in May, BTC prices fell to lows of $66,000, forming a critical support level.

Now, as Bitcoin prices hover around $70,000, traders are watching key fundamental data from the United States for cues on the next breakout. Cooling inflation and an uptick in the M2 money supply could hint at more buying power entering the markets.

The United States Federal Reserve has closely monitored inflation, among other metrics. With inflation dropping, the Fed may decide to slash interest rates, fueling a bull run like it did in 2021. Other key drivers would include the encouraging flow into spot Bitcoin ETFs.

As BTC soared to register March 2024 highs, inflow spiked, driven chiefly by institutional demand. After prices broke higher on May 20, inflows have picked up momentum.

On June 3, Lookonchain data revealed that spot BTC ETF issuers in the United States added 2,413 BTC. Grayscale’s GBTC reduced just 12 BTC.

Meanwhile, the launching of the Monochrome Bitcoin ETF (IBTC) in Australia and a similar product in Hong Kong and globally will only increase the demand for BTC. The newly launched IBTC spot ETF in Australia will directly hold BTC, which will be under the custody of Coinbase.