Unprecedented BTC Breakout: 5 Must-Knows This Week

Bitcoin enters June showing impressive strength, with early movements reigniting discussions about key resistance levels. The momentum in BTC’s price action aims for heights around $69,000 as traditional finance markets re-engage. Enthusiasts and traders alike are curious: will this be the week Bitcoin finally breaks out? This question has triggered a range of opinions in recent weeks.

For nearly three months, BTC/USD has remained confined within a narrow range. Many argue that it’s high time for an upward continuation. Yet, patient hodlers might need to wait a bit longer. This week could deliver the spark that Bitcoin bulls need to push forward, driven by significant U.S. unemployment figures expected at week’s end. On-chain indicators are suggesting a bullish resurgence while network fundamentals creep back towards their all-time peaks.

delves into the key factors that Bitcoin traders should watch closely as June progresses. Weekend volatility saw BTC/USD circle back to familiar territory by the weekly close. But as the June 3 trading session began, Bitcoin bulls set a positive pace for the Asian markets — propelling prices above $69,000.

At the time of writing, Bitcoin’s price action remains in a tactical standoff around that crucial $69,000 mark. Traders emphasize the importance of turning this level into solid support. Popular trader Skew highlighted the critical nature of sustained activity above $69,000 to foster new all-time highs. He noted increased ask liquidity above $70,000, while significant demand still rests lower at around $66,000.

Traders continue to see prices gravitate within a specific range, as shown by monitoring data. Previous patterns this year and on-chain metrics suggest potential for a breakout. TechDev, a known trader and commentator, echoed this sentiment with a chart indicating maximum five-day compression within the past eight years. This context had last been matched back in 2017.

Early June brings a relatively quiet start in macroeconomic terms, but the week isn’t without its risks. Initial jobless claims in the U.S. are scheduled for June 6, followed by additional unemployment numbers the next day. This data has been particularly impactful for Bitcoin and crypto markets, often swinging in response to deviations from expectations. True clarity will emerge later when the Federal Open Market Committee meets to discuss interest rate changes.

The CME Group’s FedWatch Tool suggests no substantial anticipation of a rate cut until at least September. Mosaic Asset’s recent newsletter argues that even if a rate cut materializes, the Federal Reserve is likely to maintain higher rates longer, which isn’t necessarily negative for stock markets.

Bitcoin and global liquidity are enjoying a complementary relationship. Chart data circulating on social media reveals an “extremely bullish” correlation between BTC/USD and the U.S. M1 money supply. Bitcoin has historically experienced peak surges following breakouts against M1 money supply. Current charts suggest we might witness a breakout of unparalleled volatility.

For instance, TechDev pointed out that Bitcoin has previously only seen blow-off tops after breaking against M1 money supply. With the longest consolidation on record just behind us, this pending breakout could have a similarly prolonged and substantial run. Celebrated traders like Peter Brandt and WhalePanda have also noticed this unusual setup, suggesting a potentially momentous phase for Bitcoin, similar to its 2017 performance.

Bitcoin’s network difficulty is recovering following last month’s significant drop due to price actions. The expected 1.7% increase in difficulty will build upon a recent 1.5% rise, steadily counteracting an earlier decline that saw difficulty move away from its all-time high. Despite these fluctuations, miners’ net BTC holdings have seen a rolling 30-day decrease, reflecting ongoing market pressure.

An outstanding development over the recent weekend was Kraken facilitating a massive withdrawal of nearly 50,000 BTC. Such significant movements haven’t been seen since the end of the 2022 Bitcoin bear market, marking one of the largest withdrawals on record for Kraken. Observers noted that, while exchange balances continue to trend downward, the sheer size of this event could signal a potential supply shock fueling further price surges. Traders and analysts remain keenly attentive, with some suggesting this could herald new all-time highs.