Bitcoin Price Forecast BTC Falls to 67000 Where is the Next Support Level

Bitcoin Price Forecast: BTC Falls to $67,000 – Where is the Next Support?
Bitcoin (BTC), the top cryptocurrency globally, recently lost its upward momentum and has entered a bearish phase. After hitting a high of $69,977, BTC dropped to $67,039, and is currently priced at $67,600.32 with a trading volume of $35.93 billion in the last 24 hours.
This change in direction was triggered by a surprising decrease in U.S. inflation, which initially supported the upward movement.
However, the unexpected hawkish stance of the Federal Reserve, forecasting only one rate cut in 2024 instead of the previously anticipated three, has put downward pressure on Bitcoin.
Looking forward, upcoming U.S. economic data, such as the Producer Price Index (PPI) and Weekly Initial Jobless Claims, are expected to provide new short-term trading opportunities and impact Bitcoin price forecasts.
Federal Reserve’s Hawkish Stance and Stable Inflation Data Impact Bitcoin Price
The sudden hawkish stance of the Federal Reserve has overshadowed softer consumer inflation figures, impacting Bitcoin’s price.
The policymakers now project only one rate cut in 2024, down from the three forecasted in March.
This shift led to higher U.S. Treasury bond yields and a stronger U.S. Dollar, weakening Bitcoin further.
Initially, there was a positive reaction to the softer inflation data, but it quickly faded after the Fed’s announcement. The Fed decided to keep interest rates unchanged, with the benchmark rate expected to reach 5.1% this year, indicating only one rate cut in 2024.
Moreover, the Fed increased its neutral rate forecast to 2.8% from 2.6%, supporting the U.S. Dollar and diminishing Bitcoin’s appeal.
Regarding the data:
The U.S. Bureau of Labor Statistics (BLS) reported that consumer inflation, as measured by the Consumer Price Index (CPI), remained steady in May for the first time since last June, with the annual rate slightly dropping to 3.3% from 3.4%.
The core CPI, which excludes food and energy prices, rose by 0.2% in May and increased by 3.4% annually, compared to the 3.6% rise in April and the anticipated 3.5%.
Therefore, the Federal Reserve’s more hawkish stance and stable inflation data have pushed Bitcoin’s price down as higher U.S. Treasury yields and a stronger Dollar reduce the cryptocurrency’s attractiveness to investors.
Bitcoin Whales’ Strong Accumulation Indicates Investor Confidence
Large investors, known as Bitcoin whales, took advantage of a recent price decline to purchase significant amounts of BTC. On June 11, they acquired 20,600 BTC, valued at around $1.38 billion—the most they had bought in a single day since February.
During 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 daily. The substantial purchase on June 11 coincided with a sharp drop 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 aligned with a decrease in the amount of Bitcoin available on cryptocurrency exchanges, indicating that investors anticipate higher prices in the medium to long term.
Hence, the significant accumulation of Bitcoin by whales during the price drop on June 11 signals strong investor confidence. This trend suggests potential support for Bitcoin’s price amid market fluctuations and reduced exchange supply.
Renewed Interest in U.S. Bitcoin ETFs Maintains Price Stability
U.S. spot Bitcoin ETFs saw a significant turnaround with $101 million in net inflows on Wednesday, breaking a recent trend 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 attracted 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 accumulated a total of $15.52 billion.
The substantial 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 Forecast
Bitcoin is currently priced around $66,850, facing challenges in maintaining its position above the pivot point at $65,985, indicating a bullish Bitcoin price prediction.
Bitcoin (BTC/USD) is under downward pressure, trading at $67,600. The pivot point is set at $68,500, a crucial level for determining future movements. Immediate resistance levels are seen at $70,000, $71,700, and $72,900. Conversely, immediate support levels are located at $66,000, $64,600, and $63,200.
Key Points
Bitcoin is trading 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 staying below it could reinforce the current bearish bias.