Analysts say that Bitcoin’s (BTC) price needs to retake $80,000 U.S. before a meaningful recovery can occur in the cryptocurrency.
BTC is currently trading at $62,500 U.S., the same level it has been at for several days after falling below the key support level of $60,000 U.S. on June 5.
A growing number of analysts say that anything below $80,000 U.S. is likely to be a short-lived corrective bounce rather than a long-term recovery in the digital asset.
Furthermore, analysts appear to agree that any meaningful recovery in Bitcoin will hinge on a slowdown in capital exiting exchange-traded funds (ETFs).
About a dozen spot Bitcoin ETFs traded in the U.S. have endured combined redemptions of more than $5 billion U.S. in the last month.
On June 8, investors withdrew another $91 million U.S. from Bitcoin ETFs, worsening the current situation.
On social media, analyst say that Bitcoin ETF outflows need to meaningfully reverse for the price to gain upward momentum.
Continued hot inflation readings that raise the prospect of the U.S. Federal Reserve raising interest rates this year could also continue to hold Bitcoin back.
Markets are currently pricing in one 25-basis point interest rate increase for the U.S. in December of this year.
