Bitcoin returns to its familiar trading range, but the price of BTC has yet to surpass the crucial level of $27,000.
Bitcoin (BTC) quickly rebounded from $26,850, completely eliminating its losses for the month of June and favoring bullish sentiment as volatility resurfaced.
BTC/USD 1-hour candle chart on Bitstamp. Source: TradingView
BTC price recovers, nullifying the dip experienced by Binance and Coinbase
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD surged to $27,388 on Bitstamp, nearing a new high for June.
The pair extended its recovery from the previous day, with the market shrugging off initial concerns stemming from legal actions against Binance and Coinbase in the United States.
As a result, Bitcoin regained all of its previous losses and reentered its trading range, hovering just below the $27,000 mark.
“Back at $27K. Impressive rebound from the 200-Week MA. It’s time to initiate the new uptrend towards $38-42K for Bitcoin,” commented Michaël van de Poppe, the founder and CEO of trading firm Eight.
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Van de Poppe highlighted the significance of the 200-week moving average, a crucial support level that briefly dipped below at $26,400 before quickly recovering.
A previous Twitter post declared the correction in BTC price as “finished,” echoing the sentiments of other well-known traders.
“Bitcoin has successfully tested the 200-week MA as a support level,” confirmed Rekt Capital, a trader and analyst. “Although there has been some downward movement below the MA, BTC has managed to stay above it.”
BTC/USD annotated chart. Source: Rekt Capital/Twitter
Rekt Capital had previously cautioned that a significant breach of the 200-week MA could lead to a decline towards the $20,000 level.
Upon analyzing the rebound, trading suite Decentrader found reasons for optimism, citing the behavior of exchange traders as a source of relief.
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
Analysts noted that the Bitcoin price dropping below $27,000 was attributed to the presence of increased long positions, which were acting as a hindrance to the market. They further commented that a temporary pullback is typically observed until this situation is resolved.
Material Indicators, a monitoring resource, closely observed liquidity movements on the Binance order book and described the unfolding events as a positive progression, likening it to a “stairway to heaven” as market conditions improved.
However, it was highlighted that the crucial level to surpass was $27,400, which, as of the time of writing, had not been breached.
Despite the #FUD, it'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
Arthur Hayes, the former CEO of BitMEX, remained unwavering in his confidence regarding BTC price movement towards a more favorable direction. Encouraging hodlers, he urged them to patiently await the complete resurgence of the Bitcoin bull market.
Hayes expressed his optimism about the rebound, stating, “The wall of worry is being climbed, come with me on the BTC bull market bus. Though we may still face challenges, the moon is not too far away.”
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The day before, Hayes had warned about the “FUD” (fear, uncertainty, and doubt) surrounding Binance, suggesting that risk assets were reacting to broader macroeconomic issues that would eventually be resolved.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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