The cryptocurrency market flashed bullish on June 9 as Bitcoin (BTC) price reversed, rising 20% to $ 37,500.
For the past few weeks, analysts had debated whether or not BTC had entered a long-term bear trend, and the reasoning was further complicated by a mix of positive and negative headlines, including the introduction of Bitcoin (BTC) as legal tender in El Salvador and authorities in China are instructing Chinese search engines to block results from searches related to the country’s major crypto exchanges.
Data from Cointelegraph Markets Pro and TradingView show that the price of Bitcoin has risen 20% from a low of $ 31,000 on June 8 to an intraday high of $ 37,450 as the bulls try to take control to adopt the trend.
The move up is viewed as a bullish move by many, including Mike McGlone, senior commodity strategist at Bloomberg Intelligence, who now believes BTC is more likely to hit $ 40,000 than it is to break down to $ 20,000. On the flip side, traders like Rekt Capital believe that BTC needs to have a weekly closing price of over $ 32,000 to avoid further downward movement.
#BTC is now in weekly support (black; ~ $ 32000)
It’s okay to get into the orange (~ USD 29,000) zone as long as $ BTC can complete Weekly Close above the black level later this week # Bitcoin pic.twitter.com/iDtjHdphKj
– Rekt Capital (@rektcapital) June 8, 2021
The coming days will determine the fate of the bull run
The steady stream of positive announcements combined with renewed crackdown by regulators in China has led some traders to ponder whether a bullish reversal is imminent or whether the current price move is nothing more than a bull trap.
According to Delphi Digital, the clear head and shoulders pattern on the BTC chart is a potential bearish indicator.
Despite this bearish pattern, analysts also noted that a bullish RSI divergence has also formed, suggesting the possibility of a trend reversal in the near future.
According to Élie Le Rest, partner at the digital asset management company ExoAlpha, “the thesis for Bitcoin as a store of value is stronger than ever”, but he believes that the top cryptocurrency “must increase its dominance” in order to take the current bull run reach carry on.
Le Rest pointed to the news that El Salvador would recognize BTC as legal tender as “a big step forward towards Bitcoin adoption,” and he expects other countries to follow suit in the months and years to come.
Regarding Bitcoin’s future outlook, Le Rest mentioned that after retesting at the lower level of the $ 30,000 to $ 40,000 range in the past few days, a break above $ 40,000 could “resume the bull run from a month ago “.
Le rest said:
“Traders still have doubts about where the market is going, so leverage has remained relatively low as forced liquidations have been painful since May. A break of $ 40,000 could boost traders’ confidence to use their book again to make new highs in the crypto market to reach.” . “
Traders have also been keeping a close eye on Ether (ETH) and Le Rest pointed out the “massive ETH outflow” that is happening on the 8th like the Binance Smart Chain, Solana and Avalanche are “making great efforts to gain their DeFi market share . “
Altcoins are recovering alongside Bitcoin
Bitcoin’s rally to $ 37,500 has also given a boost to many altcoins.
Ether saw its price rally 14% from a low of $ 2,300 on June 8 to an intraday high near $ 2,630, and Delphi Digital indicated that a decline in the circulating supply of Ether caused the price of Ether to drop as low as 23% Smart contracts are now blocked.
Other notable accomplishments include a 23% gain in Kusama (KSM) to an intraday high of $ 486 after the start of the Kusama Parachain auctions and an 18% gain in the Curve DAO token (CRV) to $ 2.50.
The total market cap of the cryptocurrency is now $ 1.63 trillion and the dominance rate of Bitcoin is 43%.
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