Bitcoin Sees Strong Start in June with Potential Breakout Looming Amid Unemployment Data Release
Summary:
Bitcoin starts June strong with an initial surge putting significant resistance at $69,000 back into play. As traditional finance markets re-enter, a possible breakout is speculated for the cryptocurrency. Unemployment data expected this week may provide the boost bulls need. Meanwhile, on-chain signals indicate a bullish comeback for Bitcoin as it gradually recovers. Macro-economic trends suggest potential volatility for risk assets. Facing challenging conditions, miners’ net BTC holdings have been declining. Crypto-exchange Kraken noted an impressive 48,000 BTC withdrawal over the weekend.
Bitcoin (BTC) starts June in a strong position as an initial surge puts significant resistance back into the mix. The momentum of BTC's price is aiming for $69,000, as traditional finance markets re-enter the picture — the question now is, will we see a breakout this week? This has been a dominant query among Bitcoin market players, eliciting a wide range of opinions in recent times. Observers argue that BTC/USD, which has been rangebound for almost three months now, is overdue for an uptick — but holders may still need to hold on a bit longer. This week could provide the stimulus bulls need, with the US recorded jobless numbers (known to be a source of risk-asset fluctuation) due before the week's out.
Simultaneously, on-chain signals are pointing towards a bullish resurgence for Bitcoin, while quietly in the background, the network fundamentals creep closer to their very own record highs. As Cointelegraph investigates the main subjects facing Bitcoin traders at the beginning of June, the price and sentiment are gradually recovering lost territory.
The $69,000 - a crucial figure of the week
After a turbulent weekend, BTC/USD returned to where it began at the weekly close, according to data from Cointelegraph Markets Pro and TradingView. However, as soon as the trading session got underway on June 3, Bitcoin bulls drove the price trajectory upwards for Asia’s trading hours. The BTC price action is now hovering over $69,000 and continually challenging this threshold. Traders agree on the importance to transform this into a robust support.
A popular trader, Skew, posits in his latest review that it’s a waiting game to see how the market develops from here. He highlights $69,000 as an "important price this week" and points to an abundance of ask liquidity above $70,000, while the bulk of bids are resting lower down close to $66,000. He concludes that for now, "spot bids" need to increase towards $67,000.
Meanwhile, CoinGlass reports continuous efforts to keep the price inside the current range. This scenario comes against the backdrop of prior Cointelegraph reports on on-chain metrics echoing crucial breakout patterns from earlier this year.
Upcoming jobless data signaling week of Federal Open Market Committee
While the macroeconomic landscape seems placid at the start of the week, it doesn't necessarily mean a complete lack of potential volatility for risk assets. Jobless claims in the US are expected to come in on June 6, followed by additional unemployment data the next day. Employment data has shown to significantly impact Bitcoin and crypto markets — a higher than expected unemployment rate implies that the Federal Reserve's tight fiscal measures affect the economy. This could lead to an earlier loosening of these measures.
The Federal Open Market Committee convenes later in the month to discuss alterations in the interest rates - this news should provide some clarity on the matter. The latest information from CME Group’s FedWatch Tool notes no likelihood of a significant cut in rates until September, at the earliest.
The Bitcoin price is gearing up for a breakout from an “extensive consolidation”
Bitcoin and worldwide liquidity have proved to be a favorable combination for bulls. The latest data being shared among social media users depicts an “extremely bullish” connection between BTC/USD and the U.S. M1 money supply.
The recent report from Glassnode, however, highlights the challenging conditions miners are facing. Data up until June 2 shows that over the past month, miners’ net BTC holdings have been on the decline — a trend showing signs of acceleration.
Kraken draws attention to massive 48,000 BTC withdrawal
The trend of decreasing BTC balances across crypto exchanges was broken this weekend by significant activity on the popular trading platform, Kraken. Glassnode confirms that withdrawals on the platform on May 30 and May 31 totaled close to 50,000 BTC ($3.44 billion). BTC is in high demand across exchanges, and total balances have hit levels not seen since 2017.
Please note, this article does not provide investment advice or recommendations. All investments and trading decisions carry risk, readers are advised to undertake their own research before making any decisions.
Published At
6/3/2024 12:38:21 PM
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