- Bitcoin rebounded from $59,163 low to $62,000+ as Fear and Greed Index hit extreme (13)
- Institutional capital is rotating into traditional stocks ($200 billion inflows in May alone) and positioning for upcoming IPOs (SpaceX, OpenAI, Anthropic)
- Technically, Bitcoin is near critical support at $60,000 with potential upside to $70,000
Bitcoin price is crawling back after plunging to a multi-year low of $59,163 on Saturday. It rebounded to over $62,000, triggering a big move in the crypto industry, with tokens like Humanity, LUNC, Toncoin, and Terra Classic leading the charge. So, will the BTC price rebound further or resume the uptrend?
Bitcoin Price Rises Amid Dip Buying
The main reason the Bitcoin price is rising today is that investors are buying the dip after it crashed by double digits and moved to a crucial support level.
This rebound is occurring after the Crypto Fear and Greed Index retreated into the extreme fear zone at 13. It is common for Bitcoin and the broader crypto market to bounce back whenever the gauge moves to the extreme fear zone.
Still, Bitcoin faces some major risks. First, there are signs that American investors have fallen out of love with the coin. Its ETFs have shed over $1.6 billion in assets this month, following a $2.4 billion loss the previous month.
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BlackRock’s IBIT ETF has led the charge, losing over $45 billion in total assets as its AUM has dropped to $46 billion from $91 billion last year. Fidelity’s FBTC and Grayscale’s GBTC have lost billions of dollars in assets.
Investors have likely dumped these assets due to Bitcoin’s underperformance, as it has trailed the stock market over the past few years. Also, they have pumped their cash into the stock market, with inflows soaring by $200 billion in May alone.
Some investors have likely sold their holdings to accumulate cash ahead of the upcoming IPOs of SpaceX, OpenAI, and Anthropic. These will be massive IPOs that will raise billions of dollars over time.
Looking ahead, the Bitcoin price will react to the upcoming US inflation numbers on Wednesday. Economists expect the data to show that the headline Consumer Price Index (CPI) rose 4.2%, up from 3.8% the previous month. Soaring inflation is a sign that the Federal Reserve will maintain a hawkish tone, which helps explain why the ten-year yield rose to 4.53%.
Bitcoin Price Technical Analysis
The daily chart reveals that the BTC price has slumped in the past few weeks and is now along the key support level at $60,000. It has formed a double-bottom pattern whose neckline is at $82,230, its highest point in May this year.
Bitcoin price has sunk to the most oversold level in years. As such, there is a likelihood that the coin will bounce back, potentially to $70,000. This view will happen as long as the coin remains above the key support at $60,000.
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