Bitcoin quickly erased its monthly losses through June 7 as volatility finally turned in favor of the bulls. The data showed that BTC/USD reached $27,388 on Bitstamp. This almost marks a new June high. The pair continued the recovery that started the previous day. Markets shook the initial nerves from US legal action on Binance and Coinbase. So what’s next?
Is the correction process over for Bitcoin?
Bitcoin has regained all the ground it lost, returning to its previous trading range focusing just below $27,000. Michaël van de Poppe said, “It’s back to $27,000. Big bounce from 200-Week MA. It is time to increase the new uptrend in Bitcoin to $38-42k,” he said. Van de Poppe referred to the 200-week moving average at $26,400, a key support level that was lost for just a few hours. A previous tweet pointed out that popular traders echoed similar sentiments. Many analysts think that the BTC price correction is “over”.
“Bitcoin has retested the 200-week MA as support,” analyst Rekt Capital confirmed. “There was a downside wicking below the MA but BTC managed to stay above it,” he added. Rekt Capital had previously warned that a drastic loss of the 200-week MA would result in a trip towards $20,000.
Analyzing the bounce itself, trading platform Decentrader saw a reason for relief based on the behavior of stock traders. Analysts, who later commented on the return below $27,000, argued that it was the increasing long positions that held the market back. “We usually see some pullback until this situation is resolved,” they added.
We also got confirmation of the strength of the move, with the #Bitcoin Long/Short ratio plummeting over 50% as price climbed. https://t.co/1pjiJIrika pic.twitter.com/zzZCePK1LB
— Decentrader (@decentrader) June 7, 2023
Hayes: BTC breaks ‘wall of worry’
Material Indicators followed the liquidity movements in the Binance order book. He described the events as “on the rise” as conditions improved. However, it marked $27,400 as a key area to be surpassed, which had not occurred at the time of writing.
#FireCharts shows #BTC ask liquidity moving upward like a "Stairway to Heaven"…unless you're short. 🙃 pic.twitter.com/8xJIqgg3QD
— Material Indicators (@MI_Algos) June 6, 2023
Arthur Hayes, the former CEO of derivatives exchange BitMEX, has equally not shaken his belief that BTC price action will go to a better place. In the ongoing social media backlash, Hayes urged hodlers to wait for the full return of the Bitcoin bull market. “Concern is mounting, come with me to the BTC bull market,” he wrote about the recovery. “We’re still struggling, but the ‘moon’ isn’t far away,” he added. A day earlier, Hayes had pointed out that risk assets are responding to larger macroeconomic challenges. However, he warned of the “FUD” surrounding Binance, arguing that these will also be resolved.
The wall of worry is being climbed, come with me on the $BTC bull market bus. We are still on struggle street , but the moon ain’t far away. pic.twitter.com/PEmuG5k7dj
— Arthur Hayes (@CryptoHayes) June 6, 2023
Crypto Capo: This is how BTC can gain momentum
On the other hand, Credible Crypto tells its 340,600 Twitter followers that Bitcoin bulls have successfully defended a critical support level of $25,000 after Monday’s corrective move. According to Credible Crypto, a move below $25,000 will likely result from forced liquidations. This will also be positive for long-term BTC bulls. Also, as soon as we manage to reclaim $27,500, we will likely see a “complete reversal.” The $27,500 target is pretty close to $27,400 as stated by Material Indicators. The trader says he is accumulating Bitcoin at current prices as he predicts that breaking above $27,500 could see BTC skyrocket to an all-time high.
