Maintaining its position as number 1 in the crypto rankings by market capitalization, Bitcoin (BTC USD) has retained its dominance in most metrics.
When it comes to stores of value in the digital asset space, Bitcoin is king. And while there have been some pullbacks since the token’s recent all-time high in March, Bitcoin has seen short-term fluctuations as it builds momentum.
With trading currently trading within a trading range, investors are closely watching inflows and outflows from heavily traded and recently approved spot Bitcoin ETFs.
The BlackRock iShares With more than $20 billion in assets, the ETF is the most closely watched in this regard.
Analysts focused on Bitcoin’s further development have a few catalysts to keep an eye on. Here’s what those who might be looking to add Bitcoin in June should keep in mind.
Back at $69,000
This month, Bitcoin bounced back to the $69,000 level after falling to $66,000 due to macroeconomic issues. For most of the month, the top cryptocurrencies traded in this range.
US inflation data has shown decent progress, but inflation remains stubborn. And while other G7 countries are cutting interest rates, it is unclear whether the US will soon follow suit.
These types of macro factors will continue to play a large role in Bitcoin’s valuation. As long as the US dollar remains elevated relative to other currencies, some downward pressure on Bitcoin could remain.
However, as investors look for stores of value (e.g. gold, which is on the rise), one could argue that Bitcoin is positioned for a nice rally in June and beyond.
It is important for investors to keep an eye on institutional capital inflows into this asset as well as into the derivatives markets.
I think if Bitcoin can get back above $69,000, this is a token that could really see a rally from here.
The whales are back
On June 11, Bitcoin whales collected 20,600 BTC worth $1.38 billion during a price drop. CryptoQuant reported this as the largest inflow since February 28th.
Daily inflows ranged from 1,300 to 2,200 BTC while prices fell from $71,650 to around $69,000, culminating in the massive accumulation on June 11th.
On June 12, Bitcoin was trading at $67,500 after a brief price surge. The exchange supply fell to 942,000 BTC, the lowest level since December 22, 2021.
This decline often signals a strengthening market with expected price increases. Bitcoin remains 8.45% below its March 13 all-time high of $73,737.
However, some experienced investors have expressed concerns that miners could influence BTC price action. Marathon Digitals (NASDAQ:MARA) The sale of 1,000 BTC worth nearly $70 million on June 10 increased fears of a market downturn.
US-listed spot Bitcoin ETFs saw a net outflow of $65 million, with total outflows speculated to be $200 million in anticipation of economic uncertainty ahead of Fed Chair Jerome Powell’s speech on June 12.
Bitcoin remains a strong buy
Due to its popularity, Bitcoin is still the king of crypto portfolios and the leader ether (ETH-USD) clearly in terms of price-performance.
If long-term trends hold and a post-halving recovery is in order, this cryptocurrency could simply consolidate before the next rise. At least that is the bull thesis at the moment.
Personally, I think Bitcoin will experience an uptrend once it breaks the previous resistance levels around $69,000. Of course, such an optimistic assessment is not without risk – we have seen what can happen in down markets. But at the moment I think it’s the calm before the rally.
At the time of publication, Chris MacDonald did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.