Bitcoin Price Forecast: Factors Impacting BTC Value to Reach $70,000 This Week
In June, the crypto market experienced significant selling pressure, causing Bitcoin’s price to plummet to $60,000, with a brief dip to $58,488, indicating a lack of momentum and declining interest among traders.
Over a couple of weeks, the primary cryptocurrency fluctuated between $60,000 support and $63,000 resistance, facilitating new accumulation among investors, particularly institutional players and large holders who had sold near the previous peak.
However, the start of July has brought a potentially positive outlook, with Bitcoin’s price rising by 1.8% to around $62,663 at the time of this report. The broader crypto market is showing signs of recovery, with altcoins making impressive rebounds.
Ethereum’s price has rebounded to $3,455, driven by the excitement surrounding the approval of a spot ETF. Solana appears poised for a breakout above $150, currently trading at $146.
A significant double-bottom pattern has emerged, suggesting a potential 20% breakout on the daily chart. To capitalize on this bullish setup, it is crucial to defend the support levels between $60,000 and $58,844, which have been tested multiple times in recent months.
The 200-day Exponential Moving Average (EMA) further reinforces the notion of buyer interest, indicating a high probability of a bullish outcome in the near term.
Following the June sell-off, the accumulation phase must yield positive results, propelling Bitcoin towards testing the neckline resistance at around $70,000. Breaking through this level is essential to validate the pattern and attract more traders to enter positions above $70,000, potentially leading to a new all-time high at $84,500.
Traders are closely monitoring Bitcoin’s performance against key moving averages, particularly the 20-day EMA at $63,063 and the 50-day EMA at $65,015. The Relative Strength Index (RSI) is currently in a neutral position, suggesting a bullish bias in the short term.
Failure to breach the current resistance levels could result in a consolidation phase between $60,000 and $63,000, with a possibility of further downside if critical support levels are breached.
Increased inflows into spot Bitcoin ETFs have been observed recently, with net inflows reaching $73.05 million on Friday. Notably, BlackRock’s ETF has seen significant inflows since its Q1 launch, while outflows from Grayscale’s GBTC have decreased, albeit with $27 million in net outflows on the same day.
The rising volume in Bitcoin ETFs is seen as a crucial factor driving market sentiment and supporting the rally towards the projected price targets of $70,000 and $84,500.
