The cryptocurrency marketplace flashed bullish on June 9 as Bitcoin (BTC) cost reversed course and rallied 20% to $37,500.
For the past few weeks, analysts were debating whether or not BTC was entering a long-term bear trend and the debate was further complicated by a combination of negative and positive headlines including the adoption of Bitcoin (BTC) as legal tender in El Salvador and police in China ordering Chinese search engines to block results for searches linked to the top crypto exchanges in the country.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin has soared 20% by a low at $31,000 late on June 8 into an intraday high at $37,450 because bulls seem to take charge of the trend.
The transfer higher is seen as a bullish development for many including Mike McGlone, senior commodity strategist in Bloomberg Intelligence, that now feels that BTC is far more likely to reach $40,000 than fall down to $20,000. On the other hand, traders like Rekt Capital believe that BTC needs to have a weekly close above $32,000 to prevent additional downside.
#BTC is currently at Weekly support (shameful; ~$32000)
Wicking into the orange area (~$29000) is fine provided that BTC can Weekly Close over the black level later this week#Bitcoin pic.twitter.com/iDtjHdphKj
— Rekt Capital (@rektcapital) June 8, 2021
The coming days will determine the destiny of the bull run
The constant flow of positive statements together with the revived regulatory crackdown in China has led some dealers to ponder whether a bullish reversal is at hand if the present price action is nothing more than a bull trap.
In accordance with Delphi Digital, the very clear head and shoulders pattern found on the BTC chart is a potential bearish indicator.
Resource: Delphi Digital
Despite this bearish pattern, the analysts also noticed that a bullish RSI divergence has also shaped, indicating the potential for a trend change in the not too distant future.
Bitcoin cost and a bullish divergence on the RSI. Resource: Delphi Digital
In accordance with Élie Le Rest, partner at digital asset management company ExoAlpha,”the thesis for Bitcoin as a store of value is significantly more stronger than ever” but he feels that the top cryptocurrency”has to maximize its dominance” in order for the current bull run to last.
Le Rush pointed into the news that El Salvador would recognize BTC as legal tender as”a huge step forward toward Bitcoin adoption” and that he expects other countries to follow suit in the coming months and years.
Regarding Bitcoin’s future prospects, Le Rush mentioned that after the decrease level retest of their $30,000 to $40,000 range within the past few days, a break above $40,000″could resume the bull run that took place a month ago.”
Le Rush said:
“Traders have some doubts about where the market is heading, so leverage has stayed relatively low as forced liquidations have been painful since May. Breaking $40,000 could give the boost in dealers assurance to leverage their publication to power new highs of the crypto marketplace.”
Traders also have been keeping a close watch on Ether (ETH) and Le Rush pointed into the”enormous ETH outflow” seen on June 8 as”a positive indication that the ETH bull run isn’t over yet,” but he cautioned that alternative chains like the Binance Smart Chain, Solana, and Avalanche”are placing a great deal of efforts to take their DeFi market share”
Bitcoin’s rally to $37,500 also provided a boost to a lot of altcoins.
Ether saw its cost rally 14 percent by a low at $2,300 on June 8 into an intraday high near $2,630, and Delphi Digital remarked that the price of Ether has been supported by a decline in the circulating source of Ether as 23% of its distribution is currently locked up smart contracts.
Ether provide locked in smart contracts vs. price. Resource: Delphi Digital
Other notable performances include a 23% gain in the price of Kusama (KSM) to an intraday high at $486 after the launch of the Kusama parachain auctions and also an 18% gain in the price of the Curve DAO Token (CRV) to $2.50.
The overall cryptocurrency market cap currently stands at $1.63 trillion and Bitcoin’s dominance speed is 43%.
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