Bitcoin has bounced back above the weekly support level of around $67,100, after dropping to $66,177 on June 11. This drop marked the lowest level for the flagship cryptocurrency in almost a month and its first dip below $67,000 in June due to short-term trading.
Mining stocks also recovered after taking hard hits in early Tuesday trade. Riot Platforms fell by 6% but then rose by nearly 1%. Marathon Digital experienced a 5.5% loss and then rebounded with a 1.9% gain, while CleanSpark reversed 1.6% of a 7% loss.
An end to ETF inflows, but no Bitcoin price gains
Spot BTC ETFs ended an almost three-week run of inflows, recording outflows of $64.9 million. Grayscale Bitcoin Trust led outflows with $40 million, followed by Invesco Galaxy Bitcoin ETF with $20 million. However, the run of inflows did not impact the Bitcoin price positively. Some of the inflows were a result of arbitrage trades on the CME futures market, which involved shorting futures and buying the spot ETFs.
The Bitcoin market is vast, and price movements have no single cause. Short-term fluctuations are dominated by high-volume daily leveraged trades, and spot Bitcoin ETFs are not the biggest market players. This isn’t to say they haven’t been successful. Since launching, the ETFs have recorded inflows of $15.62 billion.
Bitcoin price prediction
Despite the drop on Tuesday, Bitcoin’s price has gained 60% so far this year. It reached a record high of $73,798 on March 14. It could see an initial dip before a renewed rally as markets anticipate the release of US CPI data today. The data could cause Bitcoin to get rid of buy-side liquidity before an upward trend.
If this happens, Bitcoin could lose 5% from its current price of $67,386 and find support at around $63,900. This is the middle point of the price imbalance. $64,602 represents a double price retracement, roughly coinciding with the 100-day EMA. Bitcoin could gain more than 10% to an earlier resistance level of $71,280 if it bounced off $64,240.
The bears’ case is a decline of 4% if the cryptocurrency closes below $60,919, which would mean a further drop, ultimately to around $58,000.
