As of June 13th, Bitcoin has been consolidating within a narrow range, hovering around $67,500.
This sideways movement has persisted for about three weeks, with the cryptocurrency oscillating between $72,000 (acting as resistance) and $66,350 (acting as support) since May 21. Let’s explore more about what is happening with Bitcoin’s Price.
Factors Contributing to Bitcoin’s Price Stagnation
Despite multiple attempts, Bitcoin has struggled to surpass its previous all-time high of $73,800. One of the primary reasons for Bitcoin’s stagnant price is the prevalence of cash-and-carry arbitrage strategies.
Investors buy Bitcoin in the spot market and sell Bitcoin futures when prices are higher. It allows them to maintain a market-neutral stance.
These dynamics reflect a cautious approach from institutional investors. They stabilize prices by balancing ETF buying and futures selling pressures.
Impact of ETF Inflows on Bitcoin’s Market Dynamics
Lastly, technical patterns in Bitcoin’s price chart also play a role in reinforcing the current sideways trend. The repeated attempts to break above $72,000 have been met with resistance. This forms a technical barrier that traders and algorithms respond to, solidifying the consolidation phase further.
