Bitcoin Price Stalls at $67,500: What Comes Next?
The Bitcoin price has found support at $67,500 on Saturday, June 1, 2024, as the cryptocurrency market enters a consolidation phase amidst delays surrounding the official launch of Ethereum ETFs.
Bitcoin price down 7% following Ethereum ETF approval
The approval of Ethereum ETFs triggered bullish sentiment and positive media coverage, representing a significant milestone for the global cryptocurrency industry. However, a week later, the launch of ETH spot ETFs is still pending, with fund issuers making final adjustments to their filings.
During the hiatus of ETH ETFs, the crypto market has seen significant shifts in investment patterns and strategies. Notably, Ethereum and specific Ethereum-hosted projects like memecoins and DeFi protocols have experienced high demand, at the expense of rival blockchain networks.
Bitcoin reached its monthly peak of $71,954 on May 21 but has since declined by 7%, dropping as low as $66,657 within the daily timeframe on May 31. However, Bitcoin bulls quickly responded by buying back to reclaim the $67,500 support zone.
Whale Investors Buying the Bitcoin Dip
While retail investors seem to be seeking more lucrative opportunities within the Ethereum ecosystem, on-chain data reveals that whale investors have continued to accumulate BTC.
IntoTheBlock’s daily chart of large transactions tracks the number of unique Bitcoin transactions exceeding $100,000 in value on any given day. This provides real-time insights into the level of whale demand for Bitcoin during that period.
According to the chart, Bitcoin attracted 11,530 whale transactions on May 26. As the price correction intensified, instead of exiting, Bitcoin whales appear to have increased their demand.
The latest data as of May 31 shows that Bitcoin recorded 19,020 whale transactions, reflecting a 65% surge in whale demand during a 7% price decline.
This indicates that while BTC price dropped amid weak retail sentiment, whale investors took advantage of the lower prices to buy the dip.
Bitcoin price forecast: Rebound to $70k on the Horizon
As of June 1, Bitcoin is trading at $67,600, down 7% over the past 10 days. However, with the steady rise in whale demand, Bitcoin is poised for a major rebound above the $70,000 mark once market sentiment turns bullish in the coming days.
Regarding key resistance levels to watch, IntoTheBlock’s GIOM data suggests that BTC price may encounter initial resistance at the $68,500 level.
As shown above, 1.24 million existing BTC holder addresses acquired 826,790 BTC at the maximum price of $68,658. If these holders choose to sell early, Bitcoin price could face downward pressure when it approaches their breakeven point.
However, if the bullish momentum is strong enough to propel Bitcoin above the $68,700 level, an immediate rebound above $70,000 could be in store.
If the $67,500 support fails to hold, Bitcoin bears may target a reversal towards the $65,600 area. However, given the increasing whale demand, this scenario seems unlikely at present.