Bitcoin Price Prediction: BTC Drops to $67,000 – Where’s the Next Support?

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Arslan Butt

Crypto Writer

Arslan Butt

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Arslan Butt is an experienced webinar speaker, market analyst, and content writer specializing in crypto, forex, and commodities. He provides expert insights, trading strategies, and in-depth analysis...

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June 13, 2024 07:47 EDT

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Bitcoin (BTC), the world’s leading cryptocurrency, recently failed to maintain its upward momentum and has turned bearish. After reaching an intra-day high of $69,977, BTC quickly fell to $67,039, and its current price stands at $67,600.32 with a 24-hour trading volume of $35.93 billion.

This shift in trend was influenced by a surprising drop in U.S. inflation, which initially supported the upward move.

However, the Federal Reserve’s unexpected hawkish stance, predicting only one rate cut in 2024 instead of the three projected in March, has exerted downward pressure on Bitcoin.

As traders look ahead, the upcoming U.S. economic data, including the Producer Price Index (PPI) and Weekly Initial Jobless Claims, is expected to offer new short-term trading opportunities and further impact Bitcoin price predictions.

Federal Reserve’s Hawkish Stance and Stable Inflation Data Pressure Bitcoin Price

The Federal Reserve’s unexpected hawkish stance has overshadowed softer consumer inflation figures, pressuring Bitcoin’s price.

Policymakers now predict just one rate cut in 2024 instead of the three projected in March.

This shift pushed US Treasury bond yields higher and strengthened the US Dollar, further undermining Bitcoin.

BREAKING 🚨: Federal Reserve

The Federal Reserve now owes the U.S. Treasury approximately $170 billion pic.twitter.com/UT7E3dffZi

— Barchart (@Barchart) June 13, 2024

Initially, there was a positive reaction to softer inflation data, but it faded quickly after the Fed’s announcement. The Fed kept interest rates unchanged, with the benchmark rate projected to reach 5.1% this year, suggesting only one rate cut in 2024.

Additionally, the Fed raised its neutral rate forecast to 2.8% from 2.6%, supporting the US Dollar and reducing Bitcoin’s appeal.

On the data front:

• The U.S. Bureau of Labor Statistics (BLS) reported that inflation, measured by the Consumer Price Index (CPI), remained unchanged in May for the first time since last June, with the yearly rate slightly decreasing to 3.3% from 3.4%.
• The annual core CPI, which excludes food and energy prices, increased by 0.2% in May and rose 3.4% on a yearly basis, compared to the 3.6% increase in April and the expected 3.5%.

Therefore, the Federal Reserve’s more hawkish stance and stable inflation data have pressured Bitcoin’s price downward, as increased U.S. Treasury yields and a stronger Dollar reduce the cryptocurrency’s attractiveness to investors.

Bitcoin Whales’ Strong Accumulation Signals Investor Confidence

Large investors, known as Bitcoin whales, capitalized on a recent price drop to buy substantial amounts of BTC. On June 11, they accumulated 20,600 BTC, valued at approximately $1.38 billion—the most they had purchased in a single day since February.

Earlier in the week, as Bitcoin’s price fluctuated between $71,650 and $69,000, these whales consistently added between 1,300 and 2,200 BTC to their holdings each day. The significant purchase on June 11 coincided with a sharp decline in Bitcoin’s price.

Despite a brief price increase following positive CPI results on June 12, Bitcoin was trading at $67,500 at the time of reporting. This activity also coincided with a decrease in the amount of Bitcoin available on cryptocurrency exchanges, suggesting that investors anticipate higher prices in the medium to long term.

US CPI 3.3% YoY EXPECTED 3.4% pic.twitter.com/i1m4k8Ul45

— GURGAVIN (@gurgavin) June 12, 2024

Therefore, the significant accumulation of Bitcoin by whales during the price drop on June 11 indicates strong investor confidence. This trend suggests potential support for Bitcoin’s price amid market fluctuations and reduced exchange supply.

U.S. spot Bitcoin ETFs experienced a notable turnaround with $101 million in net inflows on Wednesday, breaking a recent streak of outflows. Fidelity’s FBTC led with $51 million in investments, followed by BlackRock’s IBIT with $16 million and Bitwise’s BITB with $15 million. VanEck’s HODL and Ark Invest’s ARKB also saw inflows of $12 million and $9 million, respectively.

In contrast, Grayscale’s GBTC and funds from WisdomTree and Invesco reported no new inflows. Since their launch, these ETFs have attracted a total of $15.52 billion.

The significant net inflows into U.S. spot Bitcoin ETFs suggest renewed investor interest, potentially supporting Bitcoin’s price stability around $67,650 amid recent market uncertainties and economic data releases.

• Fidelity’s FBTC leads with $51 million inflows.
• Total ETF inflows on Wednesday: $101 million.
• ETFs have attracted $15.52 billion since launch.

Bitcoin Price Prediction

Bitcoin is currently trading around $66,850, facing challenges in maintaining its position above the pivot point at $65,985 signalling a bullish Bitcoin price prediction.

Bitcoin (BTC/USD) has faced downward pressure, trading at $67,600. The pivot point is set at $68,500, a critical level for determining future movements. Immediate resistance levels are noted at $70,000, $71,700, and $72,900. Conversely, immediate support levels are positioned at $66,000, $64,600, and $63,200.

Key Points

• Bitcoin trades at $67,600, down 1.12%, with a pivot point at $68,500.
• Immediate support levels at $66,000 and resistance at $70,000.
• RSI at 44 and 50-day EMA at $68,800 indicate a bearish trend.

The Relative Strength Index (RSI) stands at 44, indicating neutral momentum. The 50-day Exponential Moving Average (EMA) is at $68,800, suggesting a bearish trend as the current price remains below this average.

In conclusion, Bitcoin remains bearish below the $68,500 pivot point. A break above this level could signal a bullish reversal, while remaining below it could reinforce the current bearish bias.