Cryptocurrency News

Bullish Reversal? Traders Debate Whether $37K BTC Price Is A Trend Reversal

The Cryptocurrency Market Shines Bullishly As Bitcoin On June 9 (B T c) price reversed course and rose 20% to $37,500.

For the past few weeks, analysts have been debating whether BTC is entering a long-term bear trend, and the argument has been further complicated by a mix of positive and negative headlines, including the adoption of Bitcoin.B T c) as Legal tender in El Salvador And officials in China are ordering Chinese search engines to block results For searches related to top crypto exchanges in the country.

data from Cointelegraph Bazaar Pro and trading view This shows that the bitcoin price is up 20% from its low of $31,000 at the end of June 8 to $37,450 as the bulls look to control the trend.

BTC/USDT 4-hours chart. Source: trading view

The move is seen as a bullish development for many, including Mike McGlone, senior commodity strategist at Bloomberg Intelligence, who now believes BTC is $40,000. more likely to reach Compared to falling to $20,000. On the other hand, traders like Rect Capital believe that BTC should close above $32,000 on a weekly basis to avoid further downside.

The coming days will decide the fate of the bull run.

Continuous flow of positive announcements combined with renewal regulatory action in china This has prompted some traders to consider whether a bullish reversal is at hand or if the current price action is nothing more than a bull trap.

According to Delphi Digital, a clear head and shoulders pattern on the BTC chart is a potential bearish indicator.

Bitcoin Head and Shoulders Pattern. Source: Delphi Digital

Despite this bearish pattern, the analysts also noted that a bullish RSI divergence has also formed, indicating the possibility of a trend reversal in the near future.

Bullish divergence on bitcoin price and RSI. Source: Delphi Digital

According to Eli Le Rest, partner at digital asset management firm ExoAlpha, “the thesis for bitcoin as a store of value is stronger than ever” but he thinks the top cryptocurrency “needs to increase its dominance” Bull run. To continue.

Le Rest pointed to the news that El Salvador will recognize BTC as legal tender as “a big step towards bitcoin adoption” and he expects other countries to follow suit in the coming months and years. do.

Regarding bitcoin’s future prospects, Le Rest noted that after a retest of lows from $30,000 to $40,000 in the past few days, a break above $40,000 “resumes the bull run that happened a month ago.” could.”

Le Rest said:

“Traders still have some doubts as to where the market is headed, so leverage has been relatively low as forced liquidations have been painful since May. Breaking $40,000 will give traders their chance to power the crypto market’s new highs. May find the confidence to reap the benefits of the book.”

Traders are also keeping a close eye on Ether (ETH) and Le Rest pointed to the “massive ETH outflow” observed on June 8 as “a positive sign that the ETH bull run is not over”, but cautioned that Binance Smart Chain, Solana and Avalanche Alternative chains such as “are. striving hard to gain their DeFi market share.”

Altcoin Rally With Bitcoin

Daily cryptocurrency market performance. Source: Coin360

Bitcoin’s rally to $37,500 also gave a boost to many altcoins.

Ether saw a 14% increase from the June 8 low of $2,300 to a low of $2,630, and Delphi Digital reported that the Ether price was supported by a decline in the circulating supply of Ether as 23% of its supply He is going. Smart contracts have now been discontinued.

Ether supply is locked in smart contract vs price. Source: Delphi Digital

Other notable performances include an intraday high of $486 followed by a 23% rise in the price of Kusama (KSM). Kusama Parachain Auctions Launched And the price of the Curve DAO token (CRV) increased by 18% to $2.50.

The total cryptocurrency market cap now stands at $1.63 trillion and bitcoin has a dominance rate of 43%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, so you should do your own research when making a decision.