BTC Could Reach New Summer Highs Within Weeks If It Holds $73K: Analyst

However, failure to defend the current support level could open the door to a deeper correction towards the $61,000 level.

Bitcoin (BTC) is holding above a support zone that one analyst says could push it to new summer highs or take it towards $61,000.

According to them, the outcome depends on whether buyers can defend this level over the coming days.

Why everyone needs to watch the $73k support area

On June 1, cryptocurrency analyst Michael van de Poppe made a clear conditional case for Bitcoin, Saying If the $73,000 area holds, and history repeats itself, we could see two strong weeks of bullish momentum that could push the OG cryptocurrency to new highs this summer.

He also noted that there could be a broader altcoin rally alongside the Bitcoin rally.

“It is a crucial support area for Bitcoin, which must hold in order to prevent a test of $61,000,” Van de Poppe wrote. “If that happens = new summer highs = great altcoin run through the summer.”

That’s a fairly broad range of results for an asset that, at the time of writing, was trading for less than $100 above $73,000, having fallen about 6.5% in the last 30 days and also down about 30% from where it was one year ago.

Its price has remained stuck within a tight range for much of the past week, with resistance at around $74,200 and support at around $72,700, according to market watcher Daan Crypto Trades, which… to publish Earlier today that these are the levels to watch in the short term.

The macro backdrop hasn’t helped either, with spot Bitcoin ETFs seeing a continuation Outflows Since mid-May, it has lost more than $2.4 billion in that entire month, including a one-day outflow of $733 million on May 27. Researchers at XWIN Japan have pointed out that this is a fundamental problem, as they… He argues BTC, unlike stocks, does not have earnings to stabilize its price, and is therefore more vulnerable when capital turnover occurs elsewhere.

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Also worth noting is the May closing candle, as data shared by analyst AbramChart shows the month closing with just 0.08% net buying, as well as strong selling from large portfolios holding positions between $1 million and $5 million.

According to the chart, while buying exceeded selling by about $544 million last month, that number pales in comparison to April’s net buying of $11 billion and even the $4 billion recorded in March. In his assessment, after all is said and done, the May numbers could end up retesting the March control point, which was $70,600.

Record long correction, and what seasonal history says

Another thing that was noticed about Bitcoin at the beginning of this new month is that it is now entering the longest correction of the entire market cycle. According to an analyst with the pseudonym Darkfost, the cryptocurrency is set to Transgression The 237-day correction that occurred in 2024, that’s a realistic context, even if it falls short of the brutal drawdowns seen in previous bear markets, where it took 849 days to reach a new all-time high in 2023, or the 1,180 days needed to reach the peak in 2015.

There is also a seasonal dimension to things, e.g described Written by cryptocurrency watcher Markus Thelen, who notes that in the past decade, June has generated average returns of just 0.7% for Bitcoin, making it one of the weakest months for the asset. With Bitcoin down 16% year-to-date, the situation does not make for comfortable reading for the bulls.

However, Thielen raised the possibility of changing seasonal patterns, considering that May, usually seen as a strong month, failed to deliver this year, after Bitcoin’s value fell by 3.4%, according to data from CoinGlass. The analyst believes that this deviation from historical norms may mean that some of the expected vulnerabilities have already been priced in.