Investment

A bull reversal? Traders are discussing whether the $ 37,000 BTC price is a reversal

The cryptocurrency market rose as bitcoin on 9 June (BTC) the price changed direction and increased by 20% to USD 37,500.

In the last few weeks, analysts have been debating whether or not BTC is entering a long-term bear trend, and the argument is further complicated by a mixture of positive and negative headlines, including the adoption of bitcoin (BTC) as legal tender in El Salvador and authorities in China order Chinese search engines are blocking results to search related to the best cryptobourses in the country.

Data from Cointelegraph Markets Pro and TradingView shows that the price of bitcoin has risen 20% from a low of $ 31,000 at the end of June 8 to an intraday high of $ 37,450 as bulls try to take control of the trend.

4-hour BTC / USDT chart. Source: TradingView

The shift is seen as an upward trend for many, including Mike McGlon, Bloomberg Intelligence’s chief commodity strategist, who now feels BTC is more likely to reach $ 40,000 before collapsing to $ 20,000. Traders like Rekt Capital, on the other hand, believe that BTC must have a weekly close to over $ 32,000 to avoid another disadvantage.

The coming days will determine the fate of the bull run

Stable flow of positive announcements combined with renewed regulatory measures in China has led some traders to wonder if there is a bullish reversal on the rise, or if the current price action is anything but a bull trap.

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

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Bitcoin head and shoulders pattern. Source: Delphi Digital

Despite this bearish pattern, analysts also noted that bullish divergence of RSI has also developed, suggesting the possibility of reversing the trend in the near future.

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The price of bitcoin and bull divergence in RSI. Source: Delphi Digital

According to Élie Le Rest, a partner at ExoAlpha’s digital asset management, “bitcoin as a store of value is stronger than ever”, but feels that the top cryptocurrency “needs to increase its dominance” in order to continue running .

Le Rest pointed to the news that Salvador would recognize the BTC as legal tender as “a huge step forward for the adoption of bitcoin” and expects more countries to follow in the coming months and years.

Regarding the future prospects of bitcoins, Le Rest mentioned that after a retest at a lower level between $ 30,000 and $ 40,000 over the past few days, a break of over $ 40,000 could “resume the bulls a month ago.”

Le Rest said:

“Traders still have some doubts about where the market is headed, so the leverage effect has remained relatively low as forced liquidations have been painful since May. Breaking $ 40,000 could boost traders’ confidence to reuse their book to strengthen new cryptothermal highs.” . “

Traders also closely monitored Ether (ETH) and Le Rest pointed to a “massive outflow of ETH”, which was seen on 8 June as a “positive signal that the ETH bulls were not over,” but warned that alternative chains such as Binance Smart Chain, Solana and Avalanche were making great efforts, to gain market share in DeFi. “

Altcoins are collected along with bitcoins

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Daily performance of the cryptocurrency market. Source: Coin360

The $ 37,500 bitcoin rally also boosted many altcoins.

Ether saw its price rally 14% from a low of $ 2,300 on June 8 to an intraday high close to $ 2,630, and Delphi Digital pointed out that the price of Ether is supported by a decline in Ether’s circulating supply, as 23% of its offer is now locked out of smart contracts.

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

Other notable performances include a 23% increase in the price of Kusama (KSM) to an intraday high of $ 486 opening of Kusama skydiver auctions and an 18% increase in the price of the Curve DAO Token (CRV) to $ 2.50.

The total market capitalization of the cryptocurrency is now $ 1.63 trillion and the bitcoin dominance rate is 43%.

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


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