2nd Highest Weekly Close Ever — 5 Things to Know in Bitcoin This Week
After June began with incredible volatility, Bitcoin begins a new week battling historic resistance.
Bitcoin (BTC) Price Action Reveals Battle Between Bulls and Bears at Old 2021 All-Time High Around $69,000 – Who Will Win?
The increasingly unpredictable short-term market landscape has made for interesting viewing — and trading — so far in June. External triggers in the form of US macroeconomic data have shown that they can reverse a crypto's trajectory in an instant.
This, combined with liquid-structuring moves by whales, has so far prevented Bitcoin from overcoming the last resistance on the way to a price breakthrough above $74,000.
While this has disappointed many market participants, the coming days are set to provide more of the same encouraging pattern.
The US will release key inflation data later in the week, while the Federal Reserve will hold its latest meeting to discuss interest rate changes.
Meanwhile, the glimmer of hope from Bitcoin gradually strengthening various support/resistance levels on higher timeframes – something that has not gone unnoticed.
With much at stake for the current trading range, Cointelegraph takes a closer look at these key discussion topics regarding BTC price action going forward.
BTC Price: Rangebound but apt to shake
Bitcoin experienced a relatively quiet weekend after being hit by a sudden macro-switch around the last Wall Street trading session last week.
The $69,000 mark, Bitcoin's old all-time highs since 2021, created market focus, continuing into the new Asian session, data from Cointelegraph Markets Pro and TradingView show.
With no clue going up or down, liquidity began to thicken around the spot price in the old fashioned way, tracking resources like CoinGlass, setting up hunts and, with that, more volatility.
“There is not much change in the order books. Asking for cash that consolidates around $70.5K – $71K. Bid liquidity is increasing around the lows of $68.5K – $68K,” concludes popular trader Skew in his latest analysis on X.
“Market reaction to sweep both sides of the ledger will be useful for reversals or continuation trades early this week.”
Associate trader Daan Crypto Trades of CME Group's Bitcoin futures market closing prices into the new week said that price action is revolving around it “as usual”.
“Once we break that range, I suspect this will lose its edge, but until then, it's a good tool not to cut the weekend,” he told X Subscribers.
Michael van de Pop, founder and CEO of trading firm MNTrading, described BTC/USD as a “consolidation between two critical levels.”
“It's big to have a breakdown of $71.7k, but it's normal to be conservative in a CPI week,” he concluded.
CPI meets Fed meeting in key macro week for crypto
The macro landscape was dominated by two key events this week: the Federal Reserve's interest rate decision and accompanying press release, along with the publication of May's Consumer Price Index (CPI).
In something of a double whammy for risk-asset volatility, the CPI is due to be released on the day the Federal Open Market Committee (FOMC) convenes.
“The long-awaited June Fed meeting is officially here, and all eyes are on the Fed's direction,” marketing resource Kobeisi's letter wrote on Xx about the coming week.
The information can be especially useful for crypto traders. Last week, US employment data beat expectations by a large margin, sending BTC/USD down 2% in the short term, sparking an immediate rally.
Commenting on how Bitcoin will react to the earnings data, popular trader CrypNuevo suggested two possible scenarios.
“Scenario 1: Recover NFP activity early in the week, tighten until FOMC comes out, do a hawkish FOMC move and then re-watch FOMC activity. Scenario 2: FOMC resumes NFP activity. Until then, we simply tighten and clear lows,” said part of X's post. He said.
CrypNuevo cited the non-farm payrolls, or NFP, that sparked last week's cryptocurrency crash.
Market expectations for federal policy changes are, of course, unchanged for a long time — they believe the FOMC will not cut rates this month, and it could take several more meetings before the Fed moves elsewhere to cut central banks, according to data from CME Group's FedWatch Tool.
June 13, meanwhile, is another major macro data day with the US releasing the Producer Price Index, or PPI, along with weekly jobless claims.
But we must not forget that these movements tend to reverse later when economic data shakes the market. And we have same issue with NFP action 2 days ago.
“Will We Monitor NFP Activity Before the FOMC?”
BTC has reached a weekly closing high record
BTC/USD's weekly close from the March all-time high of 73,800 was significant in a broader consolidation structure.
According to various analysts, including renowned trader and analyst Matthew Hyland, Bitcoin's most recent second high was at $69,630.
Despite this coming at the last minute going into the weekend, it's a class the buyers have subsequently been able to reverse.
According to data from CoinGlass, Bitcoin finally gained 2.7% last week, with the monthly open still as support.
A weekly close above the 2021 high of $69,000 is “a good start to leaving this price range behind us,” Daan CryptoTrades said in an analysis over the weekend.
“We did it early, but it was on the back of a huge run that needed cooling,” he said.
“You could argue that $BTC will have a lot more fuel at this point.”
A well-known pseudo-analyst known as Nunia Business on X has assessed that BTC/USD's 23% retracement after the March highs is sufficient compared to previous cycles.
Bitcoin Resistance Reversal Is ‘Historic Technical Action'
For prominent trader and analyst Rect Capital, there is reason to be optimistic about BTC's price action despite the current set of ranges.
Analysis of the monthly time frames revealed ongoing clear resistance/support for a key victory in the bull market.
“Bitcoin has done historic technical work by turning an old major resistance area into a new major support,” he summarized at the end of the week.
“Bitcoin has since set up a rebound zone at these highs in continuation of the bullish flag trend.”
The accompanying chart shows that the bullpen in question is worth between $58,600 and $61,300 for the 2021 bullpen. Now, monthly timeframes show that the tide has turned for them.
“Bitcoin continues to consolidate in post-halving retracement territory,” he continued with a chart comparing past and current Bitcoin bull markets.
The highest resistance level is ~$71500. The lowest range is $60600.
Rect Capital previously suggested that the current sideways BTC price action may take longer to resolve itself, but the overall uptrend remains fairly intact.
“Currently, bitcoin is not yet ready to enter the parabolic phase of the cycle,” he reiterated.
Whalers seek “medium-term gains.”
“Restocking” describes not only the price action of BTC this month, but also the experiences of the Bitcoin Well.
RELATED: BNB, TON, FIL and INJ Bitcoin price could go much higher if $69K flips.
In a June 5 survey on on-chain analysis platform CryptoQuant, contributor Kao Oliveira noted that a large number of BTC investors are currently loading the coins for “medium-term gains.”
“As opposed to convincing Bitcoin investors who want to create long-term reserves, whales are generally looking for medium-term gains,” he wrote.
“We can easily detect this behavior in the monthly variation of Bitcoin reserves above 1,000 BTC.”
The accompanying chart shows the monthly percentage change in whales on a 30-day rolling basis. This is currently coming off a bit after the sharp spread phase that followed Bitcoin to all-time highs in mid-March.
“Note that there is a method of collection and distribution that directly affects price,” Oliveira continued.
After a heavy spread in March, institutional investors have begun the process of rallying again in the past two weeks.
Oliveira added that whale behavior has already started to show its presence in the market, but “it should strengthen in the coming weeks”.
Last week, meanwhile, Cointelegraph reported the return of long-dormant BTC to circulation in an event posted on the circulation by fellow CryptoQuant analyst JA Maartunn at the time.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
