On Monday, June 16, Bitcoin price rose over 3%, reflecting trader optimism amid increases in money supply and geopolitical factors.
Key Factors Behind Bitcoin Growth
Bitcoin price exhibited bullish sentiment after gold price recorded its highest daily close on Sunday. The flagship cryptocurrency continues to benefit from ongoing geopolitical tensions, particularly in the Middle East and between Russia and Ukraine.
Demand from institutional investors remains robust, as evidenced by the gradual decline of total supply on cryptocurrency exchanges.
BTC Price Analysis and Short-Term Expectations
On the daily time frame, BTC price has been consolidating in a symmetrical triangular pattern since hitting its all-time high of around $112,000 in mid-May. Short-term bullish expectations for Bitcoin remain palpable, especially after a consistent rebound above $107,000 in the past 24 hours.
Bullish sentiment is also reinforced by the MACD line crossing above the zero line on the one-hour chart, and the Relative Strength Index (RSI) has rallied to around the 70% level, suggesting bulls control the market.
Investment Flows and Market Speculation
According to CoinShares, Bitcoin led all other digital asset investment products in net cash inflow last week with about $1.3 billion. However, if BTC price retraces and consistently closes below the support range between $101,000 and $104,000, a renewed bearish sentiment will be confirmed.
Overall volatility in Bitcoin is expected in the coming days as the Fed prepares to release its FOMC Statement and potential changes in interest rates. Investors remain on alert for further movements in the market.
