Bitcoin has experienced a modest increase in the past 24 hours, rising by approximately 1.5% to reach $61,700 as of June 28. This uptick comes in the wake of renewed inflows into Bitcoin exchange-traded funds (ETFs) and broader gains in the cryptocurrency market. The rise in Bitcoin’s value is also attributed to VanEck’s recent application for a Solana ETF.
Why is Bitcoin Increasing?
The recent rise in Bitcoin follows three consecutive days of inflows into US-based Bitcoin ETF funds. This indicates a revived risk appetite after a week of outflows. As of June 27, these Bitcoin ETF funds managed assets worth $14.44 billion, up from $14.383 billion three days earlier. However, this is still below the peak of $15.68 billion on June 6.
Bitcoin Chart Analysis
Bitcoin’s latest price movement is part of a volatile consolidation trend. This pattern is forming a pennant, which could indicate a further downtrend following Bitcoin’s previous downward movement. If the price breaks below the lower trendline, it could fall to $56,250, representing an 8.5% drop from current levels.
The breakout potential for Bitcoin is further heightened by two critical resistance levels: the 50 exponential moving average on the 4-hour chart (50-4 hour EMA) and the descending trendline. Both levels converge around $62,000, the upper trendline of the pennant. A decisive break above this resistance could invalidate the bearish pattern and push Bitcoin’s price towards $65,000, the 200 EMA on the 4-hour chart.
Key Insights for Investors
- Bitcoin’s 1.5% rise to $61,700 was influenced by ETF inflows and VanEck’s Solana ETF application.
- Current price trends suggest a possible downtrend to $56,250.
- Breaking above $62,000 resistance could propel Bitcoin to $65,000.
These insights provide valuable information for investors considering Bitcoin’s near-term and potential movements.
In conclusion, while Bitcoin has shown a modest increase, the formation of a bearish pennant suggests potential for a further downtrend. However, breaking through critical resistance levels could see Bitcoin prices rally higher.