Bitcoin Price Forecast: $71,000 Amid $61B ETF Inflows & Shifts in U.S. Economic Data
Bitcoin (BTC/USD) is currently trading around $71,000, experiencing a slight 1% decrease. However, traders are closely watching the key pivot point at $70,600, indicated by the green line on the chart, as it could signal a positive shift in crypto price predictions.
The digital currency continues to attract attention due to recent developments in U.S. economic data and record inflows into spot Bitcoin ETFs.
Spot Bitcoin ETFs have been performing exceptionally well, consistently attracting investments over the past 16 days. On a particularly notable trading day, these ETFs received a staggering $886.6 million, the second-largest daily inflow since a record $1.04 billion on March 12, 2024. This day’s inflow accounted for 85.25% of the March peak.
Leading the inflows were Fidelity’s FBTC with $379 million, followed by BlackRock’s IBIT with $274 million, and Grayscale’s GBTC with $28 million. The total trade volume on that day reached $2.49 billion.
BlackRock’s IBIT currently holds the largest amount of Bitcoin, with 295,457.46 BTC valued at approximately $20.96 billion. Other major holders include Grayscale’s GBTC and Fidelity’s FBTC, holding 285,069.81 and 165,232.89 BTC respectively. In total, 11 U.S. spot Bitcoin ETFs manage 866,435.19 BTC, worth over $61 billion.
The sustained inflows into U.S. spot Bitcoin ETFs indicate growing investor confidence, potentially driving up Bitcoin’s price due to increased demand.
The latest U.S. economic data has provided mixed signals for Bitcoin price predictions. The ADP Non-Farm Employment Change on June 5th reported 152,000 new jobs, falling short of both the expected 173,000 and the previous 188,000. This could suggest a slowing labor market, which traditionally has a bearish effect on market sentiment but could be bullish for Bitcoin as investors seek alternative investments.
On the other hand, the U.S. Services sector has shown resilience, with the Final Services PMI maintaining a steady reading of 54.8, indicating robust activity in the service industry. Additionally, the ISM Services PMI exceeded expectations at 53.8, compared to the forecasted 51.0 and the previous 49.4, reflecting stronger-than-anticipated economic health.
The impact of these indicators on Bitcoin price predictions is as follows: the weaker-than-expected job growth might encourage a shift towards non-traditional assets like Bitcoin, especially if concerns about economic slowdown prompt investors to diversify. However, a robust service sector could temper this effect, suggesting resilience in the broader economy and potentially limiting Bitcoin’s appeal as a safe haven.
Currently, Bitcoin is trading at $70,900, with a decrease of about 1%. However, the pivot point at $70,600 is a critical level for today’s trading and indicates a bullish Bitcoin price prediction. Immediate resistance is expected at $71,800, followed by $72,500 and $73,100. On the downside, immediate support is found at $70,600, with further support levels at $69,650 and $68,500. The recent symmetrical triangle breakout above the $70,600 mark is providing support to Bitcoin, and indicators such as the 50-day Exponential Moving Average (EMA) at $69,000 and the Relative Strength Index (RSI) at 66 support a buying trend.
A double top pattern is forming near the $71,800 level, acting as resistance. However, increased buying momentum could push Bitcoin to break this resistance and target the next level of $72,500.
In conclusion, it is recommended to buy above $70,600 and monitor for potential upside towards $71,800 and $72,500. A fall below $70,600 may indicate a bearish trend.
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