Markets
Bitcoin Price Hits Hurdle at $67,500: What’s Next?
Bitcoin price held firm at $67,500 support on Saturday, June 1, 2024, as the crypto market entered the consolidation phase amid delays surrounding the official launch of Ethereum ETFs.
Bitcoin Price Drops 7% Since Ethereum ETF Approval
The approval of the Ethereum ETF triggered bullish sentiment and positive media coverage as it marked a significant milestone for the global cryptocurrency industry. However, a week later, ETH spot ETFs have yet to launch, with fund issuers still making final adjustments to their fills.
With ETH ETFs on hiatus, crypto markets have witnessed significant changes in investment patterns and strategies. Notably, ETH and specific projects hosted on Etheruem, such as memecoins and DeFi protocols, have been in high demand, to the detriment of other rival blockchain networks.
Since reaching its monthly peak of $71,954 on May 21, Bitcoin has fallen 7%, falling to $66,657 in the daily time frame on May 31. A closer look at the daily chart shows how Bitcoin bulls responded instantly with covering purchases to reclaim the $67,500 support territory.
Whale Investors Are Buying the Bitcoin Dip
However, although retail investors appear to be seeking more profitable opportunities in the Ethereum ecosystem, on-chain data shows that whale investors have continued to double down on BTC.
IntoTheBlock’s daily large transaction chart below tracks the total number of unique BTC transactions that exceed $100,000 in value on a given day. This provides real-time insights into the level of whale demand for Bitcoin during a given period.
Bitcoin attracted 11,530 whale transactions on May 26, as shown in the chart above. But as the price correction phase intensified rather than exiting, Bitcoin whales appear to have increased their demand.
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The most recent data from May 31 shows that Bitcoin reached 19,020 whale transactions, reflecting a 65% increase in whale demand, during a period of 7% price decline.
This shows that although the price of BTC fell last week amid weak retail sentiment, whale investors capitalized on low prices to buy the dip.
Bitcoin Price Prediction: $70K Recovery Ahead
Bitcoin is trading for $67,600 at the time of writing on June 1, down 7% over the last 10 days. But given the steady increase in whale demand, Bitcoin price looks set to enter a major rally above the $70,000 mark once market sentiment turns bullish in the coming days.
In terms of key resistance levels to watch, GIOM data from IntoTheBlock shows that BTC price could hit an initial hurdle at the $68,500 level.
As seen above, 1.24 million existing BTC holder addresses purchased 826,790 BTC at the maximum price of $68,658. If these holders choose to exit early, the price of Bitcoin could come under downward pressure as it approaches breakeven.
But if the bullish momentum is strong enough to propel Bitcoin price above the $68,700 level, an instant recovery above $70,000 could be on the cards.
On the downside, if support at $67,500 does not hold, Bitcoin bears could target a reversal towards the $65,600 area. But with the growing demand for whales, this scenario currently seems unlikely.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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