Following widespread selling pressure in the crypto market in June, Bitcoin price plunged to $60,000, with a candle wick extending to $58,488 at one point, reflecting the lack of momentum and dwindling interest among traders.

For a coupled weeks the largest cryptocurrency oscillated between support at $60,000 and resistance at $63,000, allowing for fresh reaccumulation among investors, especially institutional and whales who sold near the all-time high.

However, the first day of July signals a potentially green month, with Bitcoin price climbing 1.8% to hover at $62,663 at the time of writing. The crypto market is mainly in the green with altcoins generally rebounding impressively.

Ethereum price had recovered to $3,455 buoyed by the spot ETF approval hype. Solana seems geared up for a breakout above $150 but traded at $146 on Monday.

How To Navigate Bitcoin Price Double-Bottom Pattern

A critical double-top pattern has formed and is currently being nurtured for a 20% breakout on the daily chart. To make good of this bullish pattern, support between $60,000 and $58,844 which has been tested twice in May and June, must be defended at all costs.

The 200-day Exponential Moving Average (EMA) in purple also backs the buyer congestion, suggesting that a bullish outcome is highly likely.

The accumulation following the sell-off in June must then bear fruit, pushing BTC to test the neckline resistance around $70,000. To validate the pattern, bulls must breach this hurdle, prompting more traders to make new buy entries slightly above $70,000 while betting on a potential breakout reaching a new all-time high at $84,500.

Bitcoin price chart | Tradingview

However, traders will be looking for a bullish assurance in the short term and for this, BTC needs to reclaim the ground above the 20-day EMA in blue at $63,0603 and subsequently the 50-day EMA in red at $65,015.

According to the neutral position of the Relative Strength Index (RSI) at 36 after sliding into the oversold area last week, the path of least resistance firmly leans upwards.

Failure to break through this congested area could imply further doldrums between $60,000 and $63,000. Besides, another sell-off could erupt if the support is tested and crumbles leading to deeper losses below $60,000.

Factors Propping BTC For $70,000 Bound Rally

Inflows into the spot Bitcoin ETFs have also ramped up in the last few days, closing at $73.05 million net on Friday, according to SoSoValue data. BlackRock continues to be the best-performing ETF in the market, boasting $18 billion in net inflow since its launch in Q1.

Although noticeable that outflows from Grayscale’s GBTC have decreased significantly, the ETF still saw $27 million in net outflows on Friday.

Bitcoin ETFs stats | SoSoValue

Surging BTC ETF volume has become pertinent to the rally by contributing immensely to market sentiment. Should investors seek more exposure to these revolutionary financial products, the Bitcoin price prediction backs the rally to $70,000 and $84,500.

The post Will Bitcoin Price Hit $70,000? Key Factors Influencing BTC Price This Week appeared first on CoinGape.

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Filed under: News - @ July 1, 2024 1:22 pm