Technical Analysis of BTC and ETH Prices: Bitcoin Poised to Rise to $73,000

The latest signals from analysts indicate that the price of Bitcoin (BTC) needs to remain above $69,000 to reach the range of $71,500 to $73,000. Meanwhile, Ethereum (ETH) is expected to continue its rally above $4,000. Cryptocurrency expert Panji Yudha shared insights into various influential factors affecting the crypto market.

Bitcoin's price surged to $70,275 on Monday, continuing its upward trend after a positive performance in May 2024 with an 11.07% increase, breaking the "Sell In May" trend of the past three years. As of Monday evening, the leading cryptocurrency's price stood at $68,700.

In statements on Tuesday, Panji Yudha highlighted that BTC's price trend ranged between $56,555 and $71,946 throughout May 2024. Additionally, Ethereum outperformed BTC with a 24.65% increase in May, ranging from $2,815 to $3,973.

According to Panji, Bitcoin's positive performance was supported by inflows in the last week of May 2024, recording an inflow of $170.9 million, continuing a net inflow over the past three weeks. On the other hand, Ethereum experienced a surge following the SEC's approval on May 23, 2024, of eight ETF Ethereum Spot applications.

This approval came four and a half months after the SEC approved several Bitcoin Spot ETF applications on January 10, 2024, marking a significant milestone for the crypto industry and a new era for the ETF market in the United States.

Bitcoin's price strengthened due to below-market expectations of U.S. economic data, indicating a potential cut in benchmark interest rates in the coming months.

On Friday, the core Price Consumption Expenditure (PCE) index in the U.S. showed a 0.2% increase from the previous month in April 2024, following a 0.3% increase in March.

BTC opened around $67,490 on Saturday. Over the last decade (2013-2023), Bitcoin tended to close slightly higher by about 0.33% on average. In contrast, Ethereum opened at $3,760 on June 1, with an average decline of 6.38% every June from 2016 to 2023.

On the technical analysis side, Panji noted that BTC rebounded from the trendline support to reach $70,275 on Monday, and as of 8:00 AM WIB on Tuesday, was at $69,012. Panji believes that if BTC can maintain support at $69,000, it has the potential to strengthen to $71,500 and the next target at $73,000. However, if it falls below $69,000, BTC may trade sideways around $65,000 to $68,000.

Panji also mentioned that Ethereum is poised to continue its rally towards breaking the $4,000 level, supported by potential inflows from ETF trading in the U.S. Additionally, Ethereum's ecosystem, including DeFi and Layer-2, is expected to benefit from the potential rise in ETH price.

Panji highlighted various influential factors affecting the crypto market, particularly BTC and ETH prices. The relatively calm start to the week in terms of macroeconomic data doesn't rule out the potential for volatility in risky assets. The upcoming Non Farm Payroll (NFP) report on Friday will be a focus this week, with the Federal Reserve officials analyzing the information ahead of the June meeting.

The main sentiment in June revolves around the release of the U.S. Consumer Price Index (CPI) data and the Fed funds rate at the FOMC meeting on June 11-12, 2024. Following the ETFs and Bitcoin Halving, the next major catalyst is the interest rate cut. Bitcoin is likely to maintain its bullish momentum alongside the macroeconomic data to determine a clearer path for the interest rate cut in the U.S.

On the other hand, according to the latest data from the CME FedWatch Tool reflecting market sentiment, The Fed is expected to keep interest rates in the range of 5.25-5.50% at the June FOMC meeting. There is a 45.7% chance that The Fed will begin lowering interest rates by 25 basis points to 5.00%-5.25% at the September FOMC.