By
Mayowa Adebajo
June 17th, 2024
The recent approval of spot Ethereum (ETH) ETF has triggered an intensified crypto cash rotation from Bitcoin to the altcoin industry.
Bitcoin (BTC) price closed last week trading around $68,500, up only 3.3 percent in the past seven days. The flagship coin was largely outshined by Ethereum (ETH) and meme coins such as Pepe (PEPE), Floki Inu (FLOKI), and CorgiAI (CORGIAI). Despite the decent Bitcoin price rebound in the past two weeks, the buyers have struggled to pump beyond the major resistance level of around $72,000.
Moreover, the weekly Relative Strength Index (RSI) has struggled to rally above the 70 level, which is popularly regarded as the bullish flexing zone. From a technical standpoint, Bitcoin price could get trapped in a horizontal consolidation pattern in the coming months before an inevitable uproar toward a new all-time high.
Bitcoin Whales Unwavering
As Coinspeaker reported last week, the United States-based spot Bitcoin exchange-traded funds (ETF) have registered more than a week of cash inflows after a short period of profit-taking. Essentially, institutional investors are preparing for a fresh Bitcoin bull run in the near term.
According to on-chain data analysis by CryptoQuant, Bitcoin whales have aggressively accumulated in the past year.
#Bitcoin whales have been buying like never before 👀 pic.twitter.com/CRhjkcGugZ
— Vivek⚡️ (@Vivek4real_) May 26, 2024
Worth noting that the average Bitcoin’s 30 DMA on funding rate has been in the positive zone, whereby the current level hovers around 0.006 and this year’s peak was about 0.03. With the supply of Bitcoin on centralized exchanges at a multi-year low, it is evident that more long-term investors are interested in digital gold.
Moreover, the high fiat inflation and ongoing global geopolitical conflicts have favored the adoption of digital assets. Interestingly, the upcoming United States elections in November have been described as the first crypto-oriented election in history.
Over the weekend, Republican presidential candidate Donald Trump pledged to fully endorse crypto assets in addition to freeing Silk Road creator Ross Ulbricht if elected. Additionally, Trump promised to never allow the Federal Reserve to create a Central Bank Digital Currency (CBDC), which has made him popular among the more than 50 million crypto voters in the United States.
What Next
Bitcoin price is expected to continue in a consolidation mode as the altcoin industry gains bullish momentum. From a technical perspective, Bitcoin price will continue to range between $72K and $61K until a consistent close outside the channel. In case of a bullish breakout, popular crypto analyst MikyBull Crypto expects Bitcoin price to reach $78K.
#Bitcoin obviously is taking a retest, as I pointed out, as the next rally's probability.
I'm punting a long trade from the 4hr chart fvg the possible area for a bounce. https://t.co/UmOeeolSay pic.twitter.com/wEWKfLCJba
— Mikybull 🐂Crypto (@MikybullCrypto) May 26, 2024
Meanwhile, Bitcoin dominance has dropped 4 percent in the past ten days, suggesting a rising momentum in the altcoin industry. Moreover, the ETH/BTC pair has rebounded and rallied more than 27 percent in the same period. The approval of spot Ether ETF has rejuvenated the potential of the anticipated alt season happening in the coming weeks.