Bitcoin has significantly risen over the last month, reaching a new all-time high of $111,980. This sharp surge raises questions about how sustainable the growth of BTC will be in June.
While some investors are full of optimism and await further rise of BTC, others doubt whether the rise will slow down and whether bitcoin owners will choose a more cautious strategy.
Investors are actively buying Bitcoin
The mood in the bitcoin market is currently determined by active accumulation. The balance on exchanges has decreased by 66,975 BTC (more than $7.2 billion). This indicates that investors are transferring their assets from exchanges to private wallets. Such a decrease in available bitcoins on exchanges reflects a growing trust in the asset and belief in further price rise. Accumulation is also partially related to FOMO (fear of missing out on a profitable opportunity), as new investors rush to enter the market.
Bitcoin balance on exchanges. Source: Glassnode
Juan Pellisser, Vice President of Research at Sentora, recently discussed with BeInCrypto how other factors, besides accumulation, have influenced the rise in the price of Bitcoin.
"This spring, investors were willing to take risks due to a number of macroeconomic factors that contributed to 'easier financial conditions.' Inflation is decreasing, central banks are once again discussing easing policies, real yields and the dollar are falling, global liquidity is increasing, and fiscal measures remain active. These factors supported all risk assets, including Bit, and explain why the price of BTC in May was closely tied to the S&P 500," noted Pellisier.
On-chain data of realized price and profit/loss margin (On-chain Trader Realized Price and Profit/Loss Margin) shows a rise. This indicates significant unrealized profits for investors, especially those who bought BTC 1-3 months ago. The indicator helps to understand investor behavior and shows that many continue to hold the asset in anticipation of further price growth.
Julio Moreno, head of analytics at CryptoQuant, discussed with BeInCrypto how the rising profits of short-term holders could negatively impact Bitcoin.
"In the near future, traders may start to lock in profits as their unrealized profit margins approach overheated levels around 40%. On the chart, we assess the on-chain profit margin of bitcoin traders, which reached 31% in recent days (purple area)," said Moreno.
Bitcoin: realized price and profit/loss margin. Source: CryptoQuant
The price of BTC is approaching a new maximum.
In May, Bitcoin rose by 14%, reaching a record high of $111,980. At the time of writing, it is trading at $108,258 and trying to break through the resistance of $110,000. The coming days will show whether Bitcoin can maintain this momentum. If institutional and retail investors continue to accumulate BTC in June, the price may keep the bullish trend.
Interestingly, the strategy "Sell in May and Go Away" did not work in the stock markets last year. They continued to rise contrary to seasonal expectations. Bitcoin often moves in unison with the stock markets, especially in the current macroeconomic situation. Therefore, it may continue its rise in June. Given Bitcoin's resilience, it is likely to rise even in conditions of market uncertainty.
Analysis of BTC price. Source: TradingView
The price may ultimately surpass the $110,000 mark, turning it into a reliable support level, and then reach an all-time high and aim for $115,000. However, if profit-taking intensifies, BTC may undergo a correction. A sharp drop is unlikely, but the currency may face consolidation before continuing its upward trend. Support levels at $102,734 and $106,265 should act as a buffer during a decline.
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What to expect from the price of bitcoin (BTC) in June
Bitcoin has significantly risen over the last month, reaching a new all-time high of $111,980. This sharp surge raises questions about how sustainable the growth of BTC will be in June.
While some investors are full of optimism and await further rise of BTC, others doubt whether the rise will slow down and whether bitcoin owners will choose a more cautious strategy.
Investors are actively buying Bitcoin
The mood in the bitcoin market is currently determined by active accumulation. The balance on exchanges has decreased by 66,975 BTC (more than $7.2 billion). This indicates that investors are transferring their assets from exchanges to private wallets. Such a decrease in available bitcoins on exchanges reflects a growing trust in the asset and belief in further price rise. Accumulation is also partially related to FOMO (fear of missing out on a profitable opportunity), as new investors rush to enter the market.
Juan Pellisser, Vice President of Research at Sentora, recently discussed with BeInCrypto how other factors, besides accumulation, have influenced the rise in the price of Bitcoin.
On-chain data of realized price and profit/loss margin (On-chain Trader Realized Price and Profit/Loss Margin) shows a rise. This indicates significant unrealized profits for investors, especially those who bought BTC 1-3 months ago. The indicator helps to understand investor behavior and shows that many continue to hold the asset in anticipation of further price growth.
Julio Moreno, head of analytics at CryptoQuant, discussed with BeInCrypto how the rising profits of short-term holders could negatively impact Bitcoin.
The price of BTC is approaching a new maximum.
In May, Bitcoin rose by 14%, reaching a record high of $111,980. At the time of writing, it is trading at $108,258 and trying to break through the resistance of $110,000. The coming days will show whether Bitcoin can maintain this momentum. If institutional and retail investors continue to accumulate BTC in June, the price may keep the bullish trend.
Interestingly, the strategy "Sell in May and Go Away" did not work in the stock markets last year. They continued to rise contrary to seasonal expectations. Bitcoin often moves in unison with the stock markets, especially in the current macroeconomic situation. Therefore, it may continue its rise in June. Given Bitcoin's resilience, it is likely to rise even in conditions of market uncertainty.
The price may ultimately surpass the $110,000 mark, turning it into a reliable support level, and then reach an all-time high and aim for $115,000. However, if profit-taking intensifies, BTC may undergo a correction. A sharp drop is unlikely, but the currency may face consolidation before continuing its upward trend. Support levels at $102,734 and $106,265 should act as a buffer during a decline.
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