Bitcoin (BTC) quickly erased his losses for the month through June 7: Ultimately, volatility once again favored the bulls.
BTC Price Overturns Binance and Coinbase Drop
The data from Cointelegraph Markets Pro and TradingView showed that The BTC/USD pair hit $27,388 on Bitstamp, almost a new June high.
The pair continued a bounce that had started the day before: Markets shook off the initial nerves of the US Securities and Exchange Commission (SEC) legal action against Binance and Coinbase.
In doing so, bitcoin regained all the lost ground, returning to its previous trading range centered just below $27,000.
“We are back in the $27,000 zone. It has been a great bounce from the 200-week MA. Time to start the new uptrend at $38,000-42,000 for bitcoin,” answered Michael van de Poppe, founder and CEO of the trading firm Eight.
Van de Poppe referenced the 200-week moving average (MA), an important support level which, at $26,400, was only lost for a few hours.
A previous tweet qualified BTC price correction as “done”echoing a similar sentiment from other popular traders.
“Bitcoin has retested the 200-week MA for support”, confirmed the trader and analyst Rekt Capital.
“There have been bearish wicks below the MA, but BTC has managed to stay above it.”
Rekt Capital had previously warned that a firm loss from the 200-week MA would result in a drop to $20,000.
Analyzing the bounce itself, the trading suite DecenTrader saw reason to remain calm based on the behavior of cryptocurrency traders.
We also got confirmation of the strength of the move, with the #Bitcoin Long/Short ratio plummeting over 50% as price climbed. pic.twitter.com/zzZCePK1LB
— Decentrader (@decentrader) June 7, 2023
We also got confirmation of the strength of the movement; bitcoin’s long/short ratio plunged more than 50% as the price rose.
Commenting on the subsequent return below $27,000, analysts argued that it was the increase in long positions that was holding the market back.
“We’ll see a bit of a pushback until this is resolved,” added.
On the other hand, the monitoring resource Material Indicators tracked liquidity movements on the Binance order book, and described events as a “stairway to heaven” as conditions improved.
However, he pointed to $27,400 as a key zone to overcome, something that had not occurred at the time of writing this report.
Despite the #FUDit’s turning out to be a good day for #BTC. Let’s see if bulls can push it past resistance at $27.4k #FireCharts pic.twitter.com/L7AWgzPaGd
— Material Indicators (@MI_Algos) June 6, 2023
Despite the FUD, it is turning out to be a good day for BTC. We will see if the bulls can get it to break above the $27,400 resistance.
Hayes: bitcoin has scaled the “wall of worry”
Arthur Hayes, former CEO of derivatives exchange BitMEX, nor has he lost faith that the BTC price will improve.
In his continuous reactions on social networks, Hayes asked hodlers to wait for the full return of the bitcoin bull market.
“The wall of worry is being scaled; come with me on the BTC bull market bus,” wrote about the rebound.
“We are still in the street of the fight, but the moon is not far.”
The day before, Hayes had warned about the “FUD” surrounding Binance, arguing that risky assets were responding to larger macroeconomic problems, which, in turn, would be resolved.
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