After Bitcoin's Four-Day Rally Past $67,000, When Will It Hit the $70,000 Mark?

TradingKey - Bitcoin surged past $67,000 today, with the potential to break through $70,000 as early as this week.

On June 16, Bitcoin ( BTC) extended its rally, briefly breaking above $67,000. Over the past 24 hours, Bitcoin rose by about 1.6%, peaking at $67,236, its highest level in two weeks. The four-day winning streak has significantly boosted market bullish sentiment, with expectations building for the price to further break through the $70,000 threshold.

After experiencing a sharp pullback below $60,000 in early June, Bitcoin recently staged a strong 'four-day winning streak' rebound, surging past $67,000 in one fell swoop. The core catalyst was the peace agreement reached between the U.S. and Iran, which cleared geopolitical alarms. According to the latest market news, both sides have signed a memorandum of understanding electronically.

In addition, U.S. CPI inflation for May met expectations, avoiding the 'worst-case scenario.' On June 10, the U.S. reported that the consumer price index (CPI) for May rose 4.2% year-on-year, fully in line with market expectations. Although inflation remains sticky, the 'cooling of core inflation' successfully eliminated the extreme risk of another aggressive interest rate hike by the Federal Reserve at its June meeting, allowing the market's frayed nerves to ease.

While Bitcoin's 'four-day rally' is strong, the real watershed moment lies in the Federal Reserve's FOMC rate meeting on June 16-17. Currently, the market is highly focused on the Fed's upcoming dot plot. If it delivers a 'dovish' signal suggesting there is still room for rate cuts this year, Bitcoin will have an excellent opportunity to ride this rebound wave, trigger a short squeeze, and break straight through the $70,000 threshold.

However, if the Fed maintains its hawkish tone, Bitcoin may struggle to breach this technical resistance level. Since plunging in January this year, Bitcoin has generally fluctuated within a wide range of $60,000 to $80,000, with $70,000 serving as the midpoint of this range, exerting a suppressing effect on short-term rebounds.

Bitcoin price chart, Source: TradingView

In the view of SkyBridge Capital founder Anthony Scaramucci and Galaxy Digital CEO Mike Novogratz, the window for Bitcoin to break through $70,000 could open by the end of July. However, Anthony Scaramucci attributes this to market sentiment shifting from bearish to bullish, whereas Mike Novogratz believes that U.S. legislation is the key catalyst for Bitcoin's rally.