June 5, 2024
Historic Bitcoin Breakout, Bitcoin Price Today is $69,720
Bitcoin price today

Historic Bitcoin Breakout, Bitcoin Price Today is $69,720

Monday, June 3, 2024: Bitcoin Price Today is $69,720, heading into June with renewed strength, as its price momentum targets $69,000, driven by early trading activity and TradFi market influences. Bitcoin has been rangebound for nearly three months, leading market participants to anticipate a significant upward movement. However, the timing for this Bitcoin breakout remains uncertain.

BTC/USD 1-hour chart. Source: TradingView

The upcoming U.S. unemployment figures, expected at the end of the week, could be a catalyst for volatility in risk assets, including Bitcoin. On-chain indicators suggest a bullish comeback, with network fundamentals inching toward all-time highs. Data from TradingView shows that after weekend volatility, BTC/USD returned to its starting point by the weekly close. As of June 3, Bitcoin bulls set a positive tone for the Asian trading session, pushing prices back above $69,000.

Popular trader Skew emphasized the importance of the $69,000 level, stating, “Market needs to accept & sustain above $69K for continuation higher (new ATHs).” He noted increasing liquidity above $70,000, with significant bids around $66,000.

“Early week dips would be my focus for opportunities if given later (following the criteria of risk on or risk off factors).”

Potential Market Drivers and Economic Indicators

This week’s macroeconomic data, including U.S. initial jobless claims on June 6 and further unemployment numbers the following day, could influence Bitcoin’s price. Historically, Bitcoin and crypto markets have reacted sensitively to employment data, which impacts expectations for Federal Reserve policies. The FOMC meeting later this month will provide further clarity on interest rate changes.

BTC liquidation heatmap (screenshot). Source: CoinGlass

The CME Group’s FedWatch Tool currently indicates no significant chance of a rate cut until September or later. Mosaic Asset highlighted that even if a rate cut occurs this year, the central bank is likely to maintain higher rates for an extended period, which might not negatively impact the stock market.

Bitcoin’s relationship with global liquidity is evident, as highlighted by a chart comparison between BTC/USD and the U.S. M1 money supply. Analyst TechDev pointed out that Bitcoin is exhibiting a significant Bitcoin breakout pattern against the M1 money supply, suggesting potential for a major price movement.

“Bitcoin has only seen blow-off tops after breakouts against M1 money supply. And the longer it’s consolidated, the longer it’s run. This breakout follows the longest consolidation yet.”

This phenomenon is supported by historical trends and recent observations by traders like Peter Brandt and WhalePanda, who foresee a “mega moon” scenario.

Network Fundamentals and Miner Activity

Bitcoin’s network fundamentals are recovering after a decline in early May. BTC.com predicts a 1.7% difficulty increase on June 6, following a 1.5% rise two weeks earlier, mitigating a previous 5.6% drop. Hash rate consolidation continues after reaching record highs in April.

Bitcoin network fundamentals overview (screenshot). Source: BTC.com

However, miners are facing challenging conditions. Glassnode data shows a decline in miners’ net BTC holdings, with balances 2,500 BTC lower than 30 days prior as of June 2. This trend began in November 2023 and persisted through Q1 2024.

Miner rolling 30-day BTC net position change. Source: Glassnode

Meanwhile, a notable event occurred on May 30 and 31, with nearly 50,000 BTC ($3.44 billion) withdrawn from the Kraken exchange. This marked the second-largest daily withdrawal since the end of the 2022 bear market and was described as “wild” by market observers like Vivek Sen. Such significant outflows from exchanges could lead to a supply shock and potentially drive BTC prices higher, as exchange balances reach levels not seen since 2017.

Image by Pete Linforth from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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