DailyCoin Bitcoin Regular: Bulls vs Bears Battle as Price Nears Highs

• Analysts are divided with some predicting a surge to new highs, while others point to suspicious whale activity.
• Large Bitcoin trades on exchanges have raised concerns, but bulls have managed to hold the line for now.
• Despite record ETF inflows, the price has struggled as veteran Bitcoin holders appear to be cashing out.

This Bi-Weekly DailyCoin Bitcoin Regular, compiled by our expert Kyle Calvert , dives into recent developments and the ongoing tug-of-war in the Bitcoin market. We unpack the price action, fueled by record ETF inflows and countered by long-term holder selling. We’ll also explore analyst predictions, ranging from potential support levels to a bullish breakout.

News and Events

Bitcoin Nears All-Time High as ETFs See Huge Inflows

The price of Bitcoin is on the rise again, nearing its all-time high. This surge is likely due to a large inflow of cash into Bitcoin ETFs , particularly the ones from Fidelity and BlackRock. This is the second highest inflow ever recorded for Bitcoin ETFs and suggests strong investor interest in Bitcoin. Experts predict a positive June for the crypto market due to these developments.

Thailand Greenlights First-ever Bitcoin ETF in the Country

Thailand joins the global trend of regulated Bitcoin investment by approving its first Bitcoin ETF for institutional investors. This ETF offers a secure way to gain exposure to Bitcoin without directly handling the cryptocurrency. This move positions Thailand as a progressive financial hub in Southeast Asia and paves the way for broader Bitcoin adoption in the future.

Bitcoin Unveils Newest Core Update

Bitcoin is getting a new update, a test version (release candidate) of Bitcoin Core v27.1rc1 is available for developers and users to test. This follows the successful launch of v27.0 in April. The update aims to further improve the security, efficiency and functionality of the Bitcoin network.

Experts Forecast

The Bitcoin market faces conflicting forces, with analysts offering a mix of bullish and cautious outlooks.

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Material Indicators, a trading resource, sees potential for a return to support levels around $69,000 based on signals from their proprietary algorithms. However, they warn that a surge back to $71,600 could negate this scenario, and a positive U.S. Unemployment Report might be the catalyst for such a rise.

Popular trader Skew flags significant Bitcoin sales on major exchanges like Binance and Coinbase , particularly a noteworthy 2,000 BTC sale on Coinbase. This begs the question of who might be cashing out over $100 million worth of Bitcoin.

Despite this selling pressure, bulls managed to stabilize the price and prevent a continuation of the downtrend, offering some temporary relief.

Michaël van de Poppe, founder of MNTrading, believes Bitcoin is on the cusp of a breakout to a new all-time high, despite remaining within its established range. He sees positive signs but emphasizes a slower, more gradual climb for now.

Analyst Alan offers a different perspective, suggesting that whales, large-volume investors, might be intentionally holding the market back. 

According to Alan, these whales are strategically “suppressing the price to avoid getting liquidated” on their short positions concentrated between $71,500 and $75,000.

Current Outlook

Bitcoin’s price has been stuck between $73,000 and $58,000 since March despite record ETF inflows. This might seem concerning, but let’s dissect the situation.

ETF buying is a positive long-term sign, reflecting growing institutional adoption. However, selling by long-term holders is currently outweighing this force.

The key point? Stagnant price doesn’t negate bullish trends. The impact of ETFs and the recent halving (reducing new coin issuance) is yet to be fully realized.

The gap between ETF buying and new Bitcoin mined is likely to widen, potentially causing a supply squeeze. Currently Bitcoin is sitting at $70,800 and is closing in on its most recent all time high. Additionally, if long-term holder selling subsides, a price surge could follow.

Short-term price movements can be noisy, but focus on the long game. Increasing institutional interest and halving-driven scarcity position Bitcoin well for the future. This lull might be a buying opportunity for long-term investors.

On the Flipside

• Analyst Alan’s perspective on whale manipulation is just one theory, and other factors could be influencing price.
• The long-term impact of ETFs on Bitcoin price is yet to be seen. There could be unforeseen consequences or a slower adoption rate than anticipated.

Why This Matters

While the current price action might be confusing, with mixed signals from analysts and ongoing selling pressure, the bigger picture remains bullish. Record ETF inflows and the upcoming supply squeeze due to the halving point towards long-term price appreciation. This period of stagnation could be a strategic buying opportunity for investors with a long-term outlook.

If you’re interested in the cryptocurrency market, you’ll probably also be interested in this article about how Bitcoin ETFs are impacting the market:
Coinbase Suffers $500M Bitcoin Exodus as ETFs Gain Traction

If you’re following Bitcoin, you might also be interested to know that spot Bitcoin ETFs are experiencing their second-highest daily net inflows, according to this article:
Bitcoin ETFs See $887M Inflows as BTC Reclaims $71K