Bullish reversal?Traders debate whether the $37,000 BTC price is a trend reversal

The cryptocurrency market flashed bullish on June 9th because Bitcoin (Bitcoin) The price reversed and rose 20% to $37,500.

In the past few weeks, analysts have been debating whether BTC is entering a long-term bear market trend, and this argument has been further complicated by the mix of positive and negative news headlines including the adoption of Bitcoin.Bitcoin) As El Salvador legal tender Order with the Chinese authorities Chinese search engine blocking results Used for searches related to the country’s top cryptocurrency exchanges.

Data from Cointelegraph Markets Pro with Transaction view It shows that the price of Bitcoin has soared 20% from a low of $31,000 late on June 8 to an intraday high of $37,450, as the bulls want to control this trend.

BTC/USDT 4-hour chart. source: Transaction view

For many people, including Mike McGlone, senior commodity strategist at Bloomberg Information, going higher is seen as a bullish development, and he now believes that BTC More likely to reach $40,000 Instead of falling to $20,000. On the other hand, traders like Rekt Capital believe that BTC needs a weekly closing price above $32,000 to avoid further declines.

The next few days will determine the fate of the bull market

A steady stream of positive announcements, plus updates China’s regulatory crackdown This has caused some traders to think about whether a bullish reversal is coming, or whether the current price trend is just a bull trap.

Delphi Digital stated that the clear head and shoulders pattern seen on the BTC chart is a potential bearish indicator.

Bitcoin head and shoulders pattern. source: Delphi Digital

Despite this bearish pattern, analysts also pointed out that RSI bullish divergence has also formed, indicating the possibility of a recent trend reversal.

Bitcoin price and RSI are bullish divergence. source: Delphi Digital

According to Élie Le Rest, a partner of digital asset management company ExoAlpha, “The argument for Bitcoin as a store of value is stronger than ever”, but he believes that top cryptocurrencies “need to increase their dominance” to achieve The current bull market continues.

Le Rest pointed out that the news that El Salvador will recognize BTC as legal tender is “a big step towards adopting Bitcoin”, and he expects other countries to follow suit in the coming months and years.

Regarding Bitcoin’s future prospects, Le Rest mentioned that after retesting the lower level of the $30,000 to $40,000 range in the past few days, breaking $40,000 “may resume the bull market that occurred a month ago.”

Le Rest says:

“Traders still have some doubts about the market’s direction, so the leverage ratio has been relatively low because forced liquidation has been painful since May. Breaking through $40,000 may boost traders’ confidence and use their books to promote cryptocurrency again A new high in the market.”

Traders have also been paying close attention to Ethereum (Ethereum) And Le Rest pointed out that the “mass ETH outflow” on June 8 was “a positive sign that the ETH bull market has not ended”, but he warned that alternative chains such as Binance Smartchain, Solana and Avalanche “are making a lot of efforts To capture their DeFi market share.”

Altcoins rise with Bitcoin

Daily cryptocurrency market performance. source: Coin 360

Bitcoin’s rise to $37,500 also boosted many altcoins.

The price of Ether rose by 14% from a low of US$2,300 on June 8 to an intraday high of close to US$2,630. Delphi Digital pointed out that the price of Ether was supported by the decline in the circulating supply of Ether because of its 23% supply. The smart contract is now locked.

Ether supply is locked in between the smart contract and the price. source: Delphi Digital

Other notable performances include the price of Kusama (KSM) rising 23% to an intraday high of $486. Launch Kusama Parachain Auction The price of Curve DAO token (CRV) rose by 18% to $2.50.

The overall cryptocurrency market value is now $1.63 trillion, and Bitcoin’s dominance rate is 43%.

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