- Bitcoin’s (BTC) performance in June has started off with significant market activity, as it tests a crucial resistance level.
- Natural market fluctuations have kept investors on their toes, with traditional markets experiencing a resurgence.
- Quotation: “Breaking past this resistance could pave the way for new highs,” suggests noted crypto analyst, Skew.
Bitcoin teeters at a crucial resistance point, with eyes on the 69,000-dollar mark and upcoming employment data potentially influencing its trajectory.
Bitcoin Faces Critical Resistance at 69,000 Dollars
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin has demonstrated resilience following some weekend movements, closing the week on a higher note. As of the morning of June 3rd, Bitcoin bulls have stepped up once again.
At the time of writing, BTC stands above the 69,000-dollar mark, indicating persistent battles around this price level. Skew emphasized the importance of surpassing 69,000 dollars for the market to witness new peaks.
Macroeconomic Factors Impacting BTC
This week’s release of U.S. unemployment figures includes initial jobless claims on June 6th, followed by more detailed unemployment statistics the next day. Historically, Bitcoin and altcoins have reacted sensitively to employment data, which often reflect broader economic conditions influenced by Fed policies.
Fed’s monetary policy, particularly any hints of easing, could breathe new life into the crypto markets. This will become clearer during the FOMC meeting later this month when interest rates are discussed. The June employment data could therefore set the tone before the Fed’s meeting.
Accumulation Phase in Bitcoin Market
A comparison between the U.S. M1 money supply and Bitcoin’s trajectory has been a topic of discussion on social media. The M1 money supply includes cash, checking deposits, and other liquid assets, and Bitcoin has historically shown dynamic correlations with it.
Crypto analyst TechDev noted, “Bitcoin has peaked during M1 money supply breaks. The longer it accumulates, the longer the upward trend could last. This latest breakout seems to follow an extended accumulation phase,” suggesting a significant movement may be underway.
Mining Difficulty and Market Implications
Bitcoin’s mining difficulty is anticipated to increase by approximately 1.7% on June 6, according to the latest stats from BTC.com. While hash rates had reached record levels in April, they have since stabilized but remain substantial.
However, per Glassnode data, miners face challenges post-halving, with net Bitcoin holdings diminishing over the past 30 days. As of June 2, miner balances were down by about 2,500 BTC compared to 30 days prior.
Significant Bitcoin Withdrawal from Kraken
While the overall trend in Bitcoin reserves on exchanges continues to decline, Kraken has seen noteworthy withdrawals. Between May 30 and 31, Glassnode reported Kraken’s withdrawals amounted to approximately 50,000 Bitcoin (worth around $3.44 billion). This withdrawal marks one of the largest single-day activities since the 2022 bear market’s end.
Conclusion
In summary, Bitcoin’s struggle to break past the significant 69,000-dollar resistance could set the stage for future market movements. With macroeconomic factors like U.S. employment data coming into play, the following weeks could be pivotal. Investors should stay informed and make decisions based on comprehensive research and market analysis.
