Cryptocurrency Market update – Jun-5-2024
Bitcoin recorded a 5.9% gain between June 2nd & 5th, but its rally was halted at $71,746. This movement was driven by a nearly $1 billion worth of inflows into U.S.-listed Bitcoin spot exchange-traded funds(ETF), indicating strong demand from institutional investors.
Bitcoin price seems to be on the verge of creating a new all-time high, as only one significant resistance zone is standing in its way. The market is bullish in general right now and we should be ready to explore the upside full time and move on. We’re getting close to what we will be the next phase of the bull market, in a more speculative market. Now this is the type of thing where you don’t sell immediately for a profit. It has started a major move and it’s our duty to hold and see it through.
Among thousands of cryptocurrencies, it is clear that Bitcoin (BTC) and Ethereum (ETH) took the public spotlight and are likely to take more capital inflows in the future. So much so that even Ethereum is poised to become an institutional investment vehicle via exchange-traded funds (ETFs), joining Bitcoin.
BTC daily chart looks positive with all the moving averages in a bullish set-up and supporting a move higher, with a short-term series of higher lows and higher highs since the start of May adding to positive momentum. A break and open above $71.746k should quickly see $74k tested, leaving the ATH possible in the coming weeks.
We’re in day-35 of the 60-day cycle and everything is looking good. This is the kind of chart that will get us an ATH in the next cycle window. With demand from a range of global spot Bitcoin ETFs outpacing post-halving new Bitcoin supply, the medium-to-longer outlook for Bitcoin looks constructive.
The way the market is behaving, it doesn’t want to retouch the lower levels again.
With the 3 months’ consolidation structure in place, the market is going to make a push for an ATH. We’ve got reasons to be confident in this bullish market.
Chart 1. All the moving averages in a bullish set-up and supporting a move higher.
Source: Paid Content from bitcoin.live , Chart by TradingView
BTC weekly chart gives a positive look with a surge and slight pull back, building up a base up there for the next upsurge. We’re getting close to this cycle and it’s holding up well.
We’re not seeing any possibility for this market to go on massive sell-off. Every sell-off is being resisted with aggressive buy, keeping the market in a range and not pulling back sharply by 30-40% even though such cannot be ruled out. There has been an upward bias, stepping to reduce the pull back to merely 20%. This has happened four times in the last one year.
The bull market looks very much encouraging and the way the market is going, there’s no looking back to complete the 4-year cycle. I do think we may need sometime at that range to build the foundation for the next upward move in the 4-year cycle.
We’re in this type of cycle here- institution driven cycle, with ETF and so on, big inflow of capital coming into the market. It’s not easy to sell this tops and buy back lower; you run the risk of being left behind.
Chart 2.a positive look with a surge and slight pull back, building up a base up there for the next upsurge: Source: Paid Content from bitcoin.live , Chart by TradingView
Looking at BTC monthly chart we see a big move right there at the top of the range of the 3 months’ consolidation. We’ve seen the market re-accumulate in that range, building a foundation for the next expansion in this 4-year cycle.
We’re sitting on month -19 of the 4-year cycle. We’re consolidating for the next All-Time-High. This phase will be breaking into a fresh all-time territory and will be making that major push, expanding the Bitcoin market cap to the highest of the cycle.
The monthly chart looks spectacular, we’ve history on our side. We’ve the cycle positioning firmly on our side. We have ETF that gaining significant share; we have good inflows coming back to the ETF market and it’s absorbing all the sell-off here. This has been making impact from the supply perspective.
All these together point to the fact that, we’re sitting in all time frames in advantageous position right here.
Chart 3. A big move right there at the top of the range of the 3 months’ consolidation: Source: Paid Content from bitcoin.live , Chart by TradingView
Ethereum/USD
ETH/USD is also very bullish; we now have the ETF coming on board and big volume since the announcement. Recent SEC approval for a range of spot Ethereum ETFs has seen the second-largest cryptocurrency by market cap perform strongly since late May.
Ethereum is trying to gain those narratives back; I think anything being built in the space involves Ethereum to a large extent especially the layer 2 built-out.
Both the daily and weekly charts are looking great and with the daily digesting those gains and I can see the price action breaking to the upside. The near 20% bullish candle on May 20th, and the subsequent period of consolidation, is setting up a rough bullish flag pennant, again pointing to higher prices. The March 12th high at $4,095 should be tested when the May 27th high at $3,974 is broken, leaving the November 2021 ATH at $4,860 the longer-term target.
I’m glad I’m holding my positions. Let’s see if Ethereum will outperform BTC to the upside.
Chart 4.A nice move of trying to break the May 27th high at $3,974 for more upside: Source: Paid Content from bitcoin.live , Chart by TradingView
