Reserve Dollar

2024

Bitcoin

Resistance

Reserve

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin (BTC) is showing signs of a bullish comeback, with the price momentum targeting $69,000.</li>
 <li>On-chain indicators and network fundamentals are aligning in favor of Bitcoin, despite a volatile traditional finance market.</li>
</ul>
<p>Bitcoin (BTC) has entered June with a fighting spirit, as an early push puts key resistance back into play.</p>
<p>The price momentum is aiming for $69,000 as traditional finance markets return to the scene, sparking questions about a potential breakout this week.</p>
<h2 id="bitcoin-s-market-performance">Bitcoin’s Market Performance</h2>
<p>BTC has been rangebound for nearly three months. Some argue that BTC is long overdue for an upward continuation, but hodlers may need to wait a bit longer.</p>
<p>The coming days could provide the necessary fuel for bulls. US unemployment figures, which have recently been a catalyst for risk-asset volatility, are due at the end of the week.</p>
<p>On-chain indicators are signaling a bullish comeback for Bitcoin. Meanwhile, network fundamentals are slowly approaching their own all-time highs.</p>
<h2 id="the-69-000-resistance">The $69,000 Resistance</h2>
<p>After some volatility over the weekend, BTC had ultimately come full circle by the weekly close. As the June 3 candle began, Bitcoin bulls set the tone for the Asia trading session — higher.</p>
<p>Now back above $69,000, BTC price action continues to battle around that area. Traders see a clear need to flip it to solid support.</p>
<p>Data from monitoring resource CoinGlass showed ongoing attempts to keep the price contained in its current range. Over the weekend, there were reports of on-chain metrics repeating key breakout patterns from earlier this year.</p>
<h2 id="unemployment-data-and-bitcoin">Unemployment Data and Bitcoin</h2>
<p>A relatively quiet start to the week in terms of macroeconomic data does not mean a complete absence of potential volatility for risk assets.</p>
<p>US initial jobless claims are due on June 6, followed by further unemployment numbers. Bitcoin and crypto markets have been particularly sensitive to employment data, which misses expectations this year.</p>
<p>The implication from surprisingly high unemployment is that tight financial conditions put in place by the Federal Reserve are making themselves felt within the economy. As such, the chances of these being unwound sooner rather than later could increase.</p>
<h2 id="bitcoin-s-breakout-from-longest-consolidation-yet">Bitcoin’s Breakout from “Longest Consolidation Yet”</h2>
<p>Bitcoin and global liquidity are a match which for bulls was made in heaven. Currently circulating on social media is an “extremely bullish” comparison between BTC/USD and the U.S. M1 money supply.</p>
<p>M1 supply refers to the sum of cash, demand deposits and checks in the U.S. economy. Over the years, Bitcoin has exhibited a key dynamic against M1, and as of June 2024 looks to be repeating its biggest-ever breakout against it.</p>
<p>The chart shows that the breakout phase in fact began last year, but by historical standards, it is yet to make its presence felt. The status quo has in fact stayed in place for a record seven years — with the implication that the fledgling breakout should be uniquely volatile to match.</p>
<h2 id="bitcoin-miners-decrease-btc-exposure">Bitcoin Miners Decrease BTC Exposure</h2>
<p>Bitcoin network fundamentals are slowly bouncing back after a rapid cooling during early May’s downward price action. The latest data predicts a roughly 1.7% difficulty increase on June 6.</p>
<p>Hash rate, the aggregate processing power dedicated to the network by miners, continues to consolidate after hitting record highs in April. However, miners themselves face challenging conditions.</p>
<p>More than one month after April’s block subsidy halving, miners’ net BTC holdings are declining on a rolling 30-day basis — a trend which is accelerating. As on June 2, the latest date for which data is available, miner balances were 2,500 BTC lower than they were 30 days prior.</p>
<h2 id="withdrawal-from-kraken">Withdrawal from Kraken</h2>
<p>Amid a general trend of declining BTC balances across crypto exchanges, one in particular stood out this weekend. On May 30 and May 31, withdrawals at the popular trading platform totaled nearly 50,000 BTC ($3.44 billion).</p>
<p>The May 30 figure alone marks the second-largest daily withdrawal from any exchange in BTC terms since the end of the 2022 Bitcoin bear market. For Kraken, it was one of the largest on record.</p>
<p>The moves were not lost on market observers, with Vivek Vivek Sen, founder of Bitcoin public relations firm Bitgrow Lab, describing them as “wild.”</p>
<p>Kashif Raza, founder of Bitcoin education platform Bitinning, noted coins leaving Kraken to external wallets in several transactions.</p>

Unprecedented Bitcoin Breakout: Key Takeaways for this Week’s BTC Price Boom

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