Bitcoin Surges Towards $140,000, Coin Market Cap Sees Rally
The predicted dip towards the $100,000-$104,000 range is seen as a crucial test for Bitcoin's price, with a failure to hold onto the $100,000 level potentially leading to a deeper correction. However, with technical indicators and market data suggesting a rally, investors remain optimistic about the future of the coin market cap.
Bitcoin's price is expected to experience a short-term correction before reaching new all-time highs above $140,000, with analysts predicting a dip towards the $100,000-$104,000 range before a rally, citing the potential impact of the upcoming CPI data on June 11.
The current rise in Bitcoin's price occurs amid the resumption of trade talks between the United States and China, fostering a more peaceful market dynamic. Technical indicators, such as bullish cup-and-handle and bull flag patterns, also suggest a rally to $140,000. Other cryptocurrencies, including Ethereum, Solana, Dogecoin, and Shiba Inu, have also benefited from the momentum, recording notable gains driven by different factors.
The asymmetry between flows in Bitcoin and Ethereum could signal a re-prioritization within crypto portfolios. A series of technical signals and market data suggest that short sellers dominated the market before the reversal, which exacerbated the bullish move once technical levels were breached. Altcoins and ETFs have also experienced a bullish move, with Ethereum ETFs showing a continuous fifteen-day streak of net inflows, signaling stronger appetite for the asset.
Bitcoin continues to show strength, with the market threatening to break above the $110,000 level. A 2% gain in early hours has pushed the price towards this resistance, and breaking above it could lead to a move towards $112,000. The 50-day EMA indicator is expected to offer support, but if broken, the $100,000 level is seen as the next support region.
The market has rallied significantly over the past five weeks, gaining 40%, and traders are now chasing momentum, which could lead to a breakout above resistance. As the coin market cap continues to grow, investors are keeping a close eye on the upcoming CPI data and its potential impact on the market.