Bitcoin Price Analysis for June 2: Bulls Eyeing $35,000 as Momentum Shifts272

Introduction

After a brief correction, Bitcoin (BTC) has regained its bullish momentum, suggesting that the uptrend remains intact. Technical indicators are flashing positive signals, and on-chain metrics indicate that investors are accumulating. In this analysis, we will examine the key levels to watch, assess the market sentiment, and provide a short-term price prediction for Bitcoin.

Key Technical Levels

Bitcoin is currently trading above the crucial support level of $30,000. A break below this level could trigger a further decline. However, the bulls are eyeing the $35,000 resistance level, which if broken would open up the way for further gains. The 50-day moving average (MA), currently at $32,300, is providing dynamic support to the price.

Market Sentiment

The Fear and Greed Index, a measure of market sentiment, has climbed into the "neutral" zone, indicating a shift away from extreme fear. This suggests that investors are becoming more optimistic about the market's prospects. Additionally, the number of active addresses on the Bitcoin network has increased significantly, reflecting growing interest in the cryptocurrency.

On-Chain Metrics

On-chain metrics also support the bullish outlook for Bitcoin. The Mayer Multiple, an indicator that measures the price of Bitcoin relative to its 200-day MA, is currently in the "oversold" zone. This historically indicates that Bitcoin is undervalued and could be due for a rally. Moreover, the Puell Multiple, which measures the daily issuance of new Bitcoins relative to the market cap, has dropped below 0.5, suggesting that miners are selling less of their rewards, which is typically a bullish sign.

Short-Term Price Prediction

Based on the current technical and fundamental analysis, we believe that Bitcoin is poised to continue its upward trajectory in the short term. The bulls are likely to target the $35,000 resistance level in the coming days. If this level is broken, it could trigger a rally towards the $40,000 psychological barrier. However, a failure to break above $35,000 could lead to a pullback towards the $30,000 support.

Conclusion

Overall, the technical, fundamental, and on-chain metrics are all aligned in favor of a bullish outlook for Bitcoin. While some pullbacks are always possible, the trend appears to be shifting in favor of the bulls. Investors should keep a close eye on the key levels mentioned above and monitor market sentiment for any signs of a change in trend.

2025-01-16

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