Over the last month, Bitcoin has experienced five major breakouts: May 21, May 22, June 9, June 10, and June 11. In all these events, the digital gold has surpassed the 107k levels, with the last one attaining its first all-time high (ATH) of 112K. In the past, when such consistent sentiment was seen, Donald J Trump was contesting for the US presidency. He made it through on the promise of making crypto go mainstream if elected to power.
But now, the same patterns are repeating. The recent statistics conclude that for every negative comment on Bitcoin on X/ social platforms, there are 2.12 positive comments to offset the damage. At the same time, it has also been seen that Bitcoin’s market dominance has increased to a new substantial level. That’s because in recent years, BTC was not able to breach the 60 mark levels; the last time it did, it was in late 2020 and early 2021. Presently, the same momentum is returning.
What is Pushing the Price of Bitcoin?
US-China Trade Talks Turn Amicable; Investors Joyous
Whenever there are trade wars, investors are very cautious and they divert money away from risky assets. But the recent US-China trade talks look promising. Both economies have hinted at de-escalation, which would mean that investors’ money will be flowing back into Bitcoin. Moreover, if there are positive trade talks, they also eliminate any instance of inflationary pressure on the economy. In the past, whenever there has been inflation, liquidity has been removed from the market. Investors, too, have withdrawn from risky assets to safe havens. As China has ended the feud, the sentiments are again moving to BTC investments. Thereby, pushing the price of BTC above. Some experts predict that BTC can even reach $150K by the end of 2025.
Bitcoin O/I Rising
Open Interest is an important determinant that can influence the price of Bitcoin. From May 23 onwards, the Open Interest rates have been spiking. They reached over $80B in validation. This means the market is highly speculative of the prices of Bitcoin touching new highs in the coming days. It is evident from the movements seen in the last few weeks of May, as shown in the image below.
However, one must also give due leverage to the fact that in the last 24 hours, the long/short ratio of accounts holding BTC/ USDT stood at around 0.56. Such records show that BTC for the moment has shown bearish trends. However, it has stood strong at the 107K levels.
As you can see in the chart above that retests have been around $110,500,$109,000, but there’s also an accumulation phase going on at $107,000. So, if BTC doesn’t go below the $107K mark soon, it could trigger an upside momentum. But at the moment, BTC is holding strong at 107K levels. If there’s no ‘death cross’ between the 9-day and 21-day EMA along with a buy signal in the Relative Strength Index (RSI), we could further see an upward momentum in action, which can further push the prices ahead. At the moment, something is happening that justifies that BTC will not break down.
Institutional Bitcoin Adoption
Institutions have turned reckless in buying BTC, pushing the bars ahead. Bitwise CEO Hunter Horsley has said, “I think once Bitcoin breaks through, e.g., $130-150k. No one is going to sell their Bitcoin.” The present momentum is progressing in that direction after BlackRock has been aggressively buying Bitcoin. This is followed by more than 116 companies willing to put BTC on their balance sheets.
Moreover, with the US possibly weakening its tough stance on crypto following the crypto Enforcement unit in the Department of Justice going defunct from hence onwards, the long-term upside is indeed putting Bitcoin to reach somewhere around 150K to 200K in the next couple of months. However, it is highly speculative whether that would happen anytime soon. But, with the growing involvement of politicians with cryptocurrencies, like President Trump launching his meme, it cannot be altogether ruled out that BTC could see some of the best times ahead.
What to Expect?
So far, BTC has been consolidating above the $105,600 mark. Due to the same, it cannot be ruled out that the breakout is evident because a flag post pattern is in formation.
With that being said, we can expect 150K on the radar at the moment, but everything will be rejected if BTC falls below that mark in the coming days.
