Bitcoin (BTC) recently faced a dip to the $67K region as investors expressed concerns over the Federal Reserve’s upcoming decision. Despite the short-term bearish sentiment reflected in BTC ETFs, trading firms remain optimistic about the cryptocurrency’s prospects. On the 10th of June, spot BTC ETFs experienced a daily net outflow of $64.9 million, breaking a month-long streak of inflows.
The dip in BTC was attributed to a stronger US Jobs report and anticipation of extra volatility at the FOMC meeting scheduled for the 12th of June. The cryptocurrency hit a weekly low and retested a short-term demand level between $66.8K and $67.92K. However, Hyblock Capital data highlighted $67K as a key long liquidity area. The question remains whether the support above $67K will hold post-FOMC or if sellers will overwhelm it.
Despite a record weakening in buying pressure, capital inflows into BTC remained slightly above average. The $67K level has prevented further price plunges since mid-May, but a hawkish Fed decision could lead to a break below this support. However, U.S. Senators, including Elizabeth Warren, have urged the Fed to consider lowering interest rates, which could help BTC hold at $67K. While the recent drop has cleared long liquidity at $68K, the next key liquidity lies overhead at $70K and $72K.
Crypto trading firm QCP Capital remains bullish on BTC, noting more near-dated bullish flows on the derivatives market. Deribit, a leading crypto options firm, also supports this stance, highlighting the potential for a Bitcoin rally. However, a hawkish Fed decision could dampen the bullish thesis and potentially lower BTC to $64K or range lows. It is essential for investors to consider these factors before making any decisions.
In conclusion, BTC’s recent dip to $67K has raised concerns among investors, but trading firms remain optimistic about its short-term prospects. The upcoming FOMC meeting and a hawkish Fed decision could influence BTC’s price movement. Key support levels at $67K and overhead liquidity at $70K and $72K will be crucial for determining the cryptocurrency’s future direction. It is important for investors to stay informed and consider all factors before making any trading decisions in the current market environment.
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