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Bitcoin Price Prediction – BTC Action Post FOMC Hints at Rally to $110K

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Highlights:

  • Bitcoin is consolidating below the $108,724 resistance
  • A rally through this resistance could pave the way for a rally to $110k
  • Price stability after rates are left unchanged could trigger a breakout to $110k soon

Bitcoin (BTC) is unmoved today, continuing the relative lack of price action in the last few days. When writing, Bitcoin traded at $104,961, up by 0.01% in the day. While the price is largely unchanged, Bitcoin trading volumes have dropped during the day.

When writing, Bitcoin trading volumes stood at $47.28 billion, down by 8.27% intraday. This is a positive signal for Bitcoin as it indicates that those holding Bitcoin are not keen on selling, regardless of what would be considered boring price action. That’s because, from a fundamental perspective, Bitcoin is still likely to go up long-term.

Bitcoin Steady as FED Holding Rates – A Bullish Signal for BTC

One indicator that Bitcoin is long-term bullish is that its price has not moved much today. That’s despite the Fed leaving rates unchanged in yesterday’s June 19 FOMC meeting. Ideally, this would have tanked Bitcoin because capital is still expensive, which means lower market liquidity. However, the price remains stable, indicating that demand for Bitcoin is still stable. This stability will likely increase investor confidence in Bitcoin, a factor that could see money flow, especially from institutional investors, rise.

Bitcoin ETF Inflows on the Rise

One indicator that Bitcoin demand is still strong despite the high rates is the ETF inflows. Bitcoin ETFs recorded inflows of $216 million on June 18, bringing the total inflows for the last six days to $1.8 billion. As Bitcoin ETFs continue to record inflows, the odds are high that the price will go up gradually until the next FOMC meeting, when BTC could rocket if rates are cut.

Bitcoin Price Stability Amidst Geopolitical Chaos A Sign of Strength

Besides the rising ETF inflows into Bitcoin despite rates remaining high, Bitcoin is weathering the ongoing geopolitical crisis relatively well. The last few days have seen an escalation of tensions between Israel and Iran in what is threatening to become a regional war.

Despite this crisis wreaking havoc across the financial markets, Bitcoin has remained relatively stable, holding firm above $104,000. This indicates that Bitcoin may have found a price floor between $100,000 and $105,000. Such is likely to boost demand from retail and institutional money, which now increasingly sees BTC as an asset that can hold value regardless of what is happening in the geopolitical environment.

Countries Now Increasingly Friendly Towards Bitcoin

Bitcoin also benefits from the US administration, and many other countries are now pro-Bitcoin. This is likely to attract capital that has in the past been sitting on the sidelines awaiting regulatory clarity.

Evidence of such capital coming into Bitcoin is the rising number of companies adding it to their balance sheets. While Strategy is best known for its Bitcoin strategy, many other big and small companies are likely to start adopting Bitcoin. The result is that Bitcoin will be expected to become more stable as long-only buyers take over, creating a self-fulfilling cycle of stability and growth. 

Technical Analysis – BTC Oscillating Around Resistance

From the charts, Bitcoin is in a multi-week consolidation below the $108,724 resistance. If bulls take control and push BTC through the $108,724 resistance, a rally to prices above $110k could follow.

Bitcoin Price
Source: TradingView

However, if there is a sudden increase in bear power, the key level to watch would be the June 2 low of $100,405. A crash through the $100,405 price level could see Bitcoin drop to multi-month support at $93,646. A rally through the $108,724 resistance seems more likely of these two scenarios. That’s because Bitcoin seems to respond well to multiple negative macro factors. It’s a hint that the underlying demand for BTC is strong.

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