The cryptocurrency market turned bullish on June 9 when the price of Bitcoin (BTC) changed course and rallied 20% to regain the $ 37,500 level.
For the past few weeks, analysts had been debating whether or not BTC was entering a long-term downtrend and the argument has been further complicated by a combination of positive and negative headlines, including the adoption of Bitcoin (BTC) What legal tender in El Salvador and the authorities of China ordering Chinese search engines that block the results of searches related to the main cryptocurrency exchanges in the country.
Data of Cointelegraph Markets Pro Y TradingView show that Bitcoin’s price is up 20% from a low of $ 31,000 at the end of June 8 to an intraday high of $ 37,450, as the bulls look to take control of the trend.
The bullish move is viewed as a bullish event by many, including Mike McGlone, senior commodities strategist at Bloomberg Intelligence, who now thinks BTC is more likely reach USD 40,000 instead of falling to $ 20,000. On the other hand, traders like Rekt Capital believe that BTC should secure a weekly close above $ 32,000 to avoid further falling.
#BTC is now at Weekly support (black; ~$32000)
— Rekt Capital (@rektcapital) June 8, 2021
BTC is now at weekly support (black; $ 32,000)
Candlestick in the orange area ($ 29,000) is fine as long as BTC can close weekly above the black level later this week.
The next few days will determine the fate of the bull market
The constant flow of positive news combined with the renewed regulatory crackdown in China It has prompted some traders to ponder whether a bullish reversal is coming or whether the current price action is nothing more than a bullish trap.
According to Delphi Digital, the clear head and shoulders pattern seen on the BTC chart is a potential bearish indicator.
Despite this bearish pattern, analysts also noted that A bullish divergence of the RSI has also formed, indicating the possibility of a trend reversal in the near future.
According Elie Le Rest, partner of digital asset management firm ExoAlpha, “Bitcoin’s thesis as a store of value is stronger than ever,” but he feels that the major cryptocurrency “needs to increase its dominance” for the current bull run to continue.
Le Rest noted that the news that El Salvador will recognize BTC as legal tender is “a big step forward towards mass adoption of Bitcoin” and he hopes other countries will follow suit in the months and years to come.
Regarding the future prospects of Bitcoin, Le Rest mentioned that After retesting levels below the $ 30,000 to $ 40,000 range in recent days, a break above $ 40,000 “could resume the bull run that took place a month ago.”
Le Rest said:
“Traders still have some doubts about where the market is going, so leverage has remained relatively low as forced sell-offs have been painful since May. Going past $ 40,000 could give investors a boost in confidence. traders to leverage their orders again to drive new highs in the cryptocurrency market. “
Traders have also been closely following the action of Ether (ETH) and Le Rest pointed out the “massive withdrawal from ETH” which was seen on June 8th as “a positive sign that ETH’s bull run is not over yet”, but he warned that alternative chains such as Binance Smart Chain, Solana and Avalanche “are making a lot of effort to take their share of the decentralized finance market.”
Altcoins rose along with Bitcoin
Bitcoin’s rally to the $ 37,500 level also provided a boost to many altcoins.
Ether saw its price rise 14% from a low of $ 2,300 on June 8 to an intraday high near $ 2,630, and Delphi Digital noted that the price of Ether is being supported by a decrease in the circulating supply of Ether, as 23% of its supply is currently locked in smart contracts.
Other altcoins with notable performance include Kusama (KSM) which secured a 23% gain to an intraday high of $ 486 after the launch of parachains auctions Y Curve DAO (CRV) which is up 18% and is currently trading at $ 2.50.
Total cryptocurrency market capitalization is currently $ 1.63 trillion and Bitcoin’s dominance is 43%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves risks, you must do your own research when making a decision.