- Bitcoin price dropped to a crucial support level in May.
- Spot Bitcoin ETFs shed over $2.4 billion in assets during the month.
- Technical analysis and potential Iran deal point to a rebound in June.
Bitcoin price is having a rough year as it continues to underperform the broader financial market. BTC dropped by over 5% in May, while the Nasdaq 100 and S&P 500 indices jumped by 12% and 6.4%, respectively. This article provides a BTC forecast for June.
Bitcoin Price is Facing Major Headwinds, But Potential Catalysts Remain
BTC price retreated into a correction, falling 10% from its May high. This retreat coincided with the substantial ETF outflows during the month. After adding $1.6 billion in assets in the first six days of the month, the funds ended the month with a net outflow of $2.4 billion, the worst period this year.
Spot Bitcoin ETFs shed substantial assets in May as investors rotated out of the risky crypto market and into stocks amid the ongoing artificial intelligence (AI) boom. For example, popular stock market ETFs like Vanguard’s VOO and State Street’s SPYM added over $21 billion in assets.
READ MORE: Pi Network Price Prediction for June 2026: Buy, Sell, or Hold?
Similarly, the relatively new NASA and DRAM ETFs added substantial assets. NASA is doing well because of the upcoming SpaceX IPO, which has driven more investment in space-related companies like Rocket Lab and Planet Labs. DRAM, on the other hand, is firing on all cylinders because of the ongoing memory chip boom.
These events have driven more people away from the crypto market, with AI coins like Venice, World Coin, and Humanity being the top gainers.
Bitcoin price also underperformed the market due to risks associated with the Federal Reserve. A report released in May showed that the headline Consumer Price Index (CPI) jumped to 3.8% in April, while the Producer Price Index (PPI) surged to 6%. These numbers helped to push bond yields higher as the odds of a Federal Reserve interest rate hike jumped.
Still, on the positive side, some potential catalysts will drive Bitcoin prices higher in June. The most notable one is that crude oil prices may continue falling during the month as a deal between the US and Iran nears. This explains why US bond yields have pulled back in the past few weeks as inflation expectations retreated.
There is also a likelihood that the best-performing assets will reverse when the SpaceX IPO happens on June 12. This will happen due to profit-taking among investors.
Bitcoin Price Prediction: Technical Analysis
Technicals suggest that Bitcoin price may be on the cusp of a bullish breakout in June this year. As the chart above shows, the coin bottomed at the ascending trendline connecting the lowest swings in February, March, and May this year. That is a sign that bears are reluctant to place short trades below the trendline.
The coin may also be in the second phase of the Elliot Wave pattern. This phase is typically followed by the third, which is usually the most bullish. If the ascending trendline support holds, the coin may rebound, potentially to the first key resistance level at $82,800.
READ MORE: Here’s Why AI Coins Like Worldcoin and Venice Token are In a Bull Run
