Ten days into June, bitcoin continues to trade lower, with prices hovering close to a twelve-month low. Despite this, there continues to be optimism around potential rallies in price over the next few weeks. Overall, there is still a lot of uncertainty in the market, with the potential for either bullish or bearish runs in upcoming sessions.
Current market conditions
In June, bitcoin (BTC) had seen its value fall for nine consecutive weeks, pushing prices to their lowest level since the same point last year.
This run started towards the end of March, when U.S. inflation rose to nearly 9%, with the war between Russia and Ukraine also escalating.
Due to these fundamental factors, traders and investors have started to shy away from high-risk assets, opting instead to find safety in safe havens.
Since then crypto markets have continued to decline, with BTC/USD going from $48,257 at the beginning of April, to a low of around $28,000 in the past three weeks.
Following these declines, BTC continued to consolidate near this level, moving between $28,000 and $30,500 in the past few weeks.
However, with two-thirds of the month left, traders are interested to see if this trend will continue, or if a rebound in price is possible.
June outlook
Bitcoin fell to its lows of $29,500 again this week as market uncertainty remained rampant over the past few sessions.
Despite hitting this support point, bulls will likely be optimistic due to the historical rallies that take place at this point.
As the chart below shows, on the last two occasions when BTC traded at this current level in June 2021 and December 2020, there were significant price increases.
Should history repeat itself, then we will likely see bulls attempting to take prices above the ceiling of $32,500.
From then on, the target is likely to be $35,000, which was the second point of interest for the bulls that drove prices higher in these runs in December 2020 and June 2021.
Overall, June looks as though it could potentially birth some surges in BTC’s price, however, a key indicator to pay attention to will be the 14-day RSI.
At the time of writing, this currently sits at 33.9, which is above the support at 33, and if relative strength continues to hold above this floor, we could see $32,500 sooner. later.
