Bitcoin price rose a daily peak of $71,400 on June 7, having held the $70,000 support for 2 consecutive days, mounting LONG positions in the derivatives markets suggests imminent BTC price discovery phase.

Why is Bitcoin Price Up Today?

BTC has regained it’s place at the top of institutional investors preference list on this week, after briefly ceding ground to ETH in the wake of the Ethereum ETF approval late-May.

Market data shows Bitcoin price action has gained 9% within the weekly time frame, rising from $66,657 on May 31.

Notably, since hitting the monthly peak of $71,754 on June 5, BTC has managed to defend the $70,000 support, signalling that most investors are seeking to hold out for future gains rather than book early profits.

Bitcoin’s rally above the $71,000 mark in the first week of June can be attributed to bullish speculations surrounding upcoming coming critical US macro indices.

The Non-Farm Payrolls report scheduled for June 7, if dovish is expected to increase the likely hood of a Fed’s rate cute during the next FOMC meeting on June 12.

BTC Exchange Deposits Plunges to All-time Low

With the EU having cut rates this week, market analysts are increasingly leaning towards a rate slash in the US in June 2024 as well. On-chain data observed this week shows that investors have started taking long-term bullish positions on BTC in anticipation of the positive impact of the first US rate cut since Covid-19 pandemic.

CryptoQuant Exchange Reserves chart below shows the real-time changes balance of all bitcoins deposited in exchange-hosted wallets.

Declining Exchange Reserves occur when majority of Bitcoin holders are bullish, and are opting to shift their holdings into long-term storage.

On May 15, the US labor of Bureau Statistics announced that the US core inflation declined to 3.4% in April 2024.

The BTC exchange reserves (blue) trend line above shows how Bitcoin investors positive speculation on US Non-Farm Jobs report may have contributed to the 9% BTC price breakout in the first week of June.

Bitcoin investors held a total of 2,905,627 BTC as of May 15, when the cooler-than-expected CPI data was released. But since then there has been a clear trend of investors shifting large amount of BTC into long-term storage.

At the time of publication on June 7, the total BTC deposited on exchanges and trading platforms has now dropped to an all-time low of $2.84 million BTC.

This implies that investors have pulled 63,000 BTC (worth approximately $4.4  billion) from the market supply between May 29 and June 7.

When such a large number of coins are removed from the market supply, it signals bullish sentiment among holders, and it also increases the odds of a price breakout, if it coincides with a demand surge.

This puts BTC price in a prime position record a major price surge in the week ahead.

Bitcoin Price Forecast: Imminent Breakout above $75k ?

Bitcoin price looks set for another leg-up, after the 9% surge recorded in the first week on June 2024. Declining market supply and positive speculations surrounding US macroeconomic indices have emerged the major bullish catalysts.

With all off these factors still in play, there’s a chance that dovish NFP report on Friday, could send BTC into a price discovery phase above $75,000 in the days ahead.

IntoTheBlock’s global in/out of the money price data also affirms this bullish BTC price forecast.

It shows that at the current prices, over 96% of all active Bitcoin holders are in profit. Hence majority of them may remain unwilling to sell, at least, until the US Fed Rate decision is unveiled in mid-June.

Looking at the chart above, Bitcoin’s next major resistance lies at the previous all-time high of $72,496 recorded in March 2024. If the bull can set up a steady support base above that $72,500 territory, it could spark another leg-up above $75,000 as predicted.

Conversely, in terms of short-term support, BTC price must hold firm above the $69,000 to avoid losing the bullish momentum.