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Following the crisis on 19 May, the crypto-market had another mini-collapse on 8 June, and once again, all eyes were on Bitcoin. The king currency fell as low as $31,000, a figure not seen on the market in a long time. While May’s decline was also massive, the price did not fall to the aforementioned amount. Furthermore, with each decrease in the rankings, the death cross myth becomes more common.
It is worth noting, however, that the asset has recovered and was trading in the $36,800 level at the time of publication. Is it reasonable to conclude that Bitcoin has already bottomed out, given that the price has already begun to rise?
Have we entered the early phases of an upward trend, or is this just a price swing? And, most importantly, is it the moment for traders to enter the market?
Following the May meltdown, Bitcoin had to hold to the $34k mark for a long time before continuing to rise from there. However, this did not occur, and the market saw the 8 June crash as a result.
1. Criteria one and two
According to technical analyst Michaël van de Poppe, a reversal looks like the most likely scenario at this point and the market ‘might’ get to witness a bullish divergence soon.
“First step is that we get into the liquidity zone and the second step is to break back or bounce back and that’s what we’re doing. But we’re still not out of the woods yet.”
2. 2 more obstacles
Another popular analyst with the pseudonym Don Alt recently highlighted,
“BTC needs to punch through this red resistance ($34k) and then it’s home free to do another crab run to $40k. Not out of the woods yet, but decent first signs of the range boundary holding.”
Post that, according to Poppe, Bitcoin’s price has to sustain a breach of another crucial level at $35.3k. Even though the daily chart projected a favorable picture, the two-hourly chart painted a completely different scenario. Bitcoin was still making lower highs and lower lows there, and that according to the analyst did not give a concrete reversal confirmation.
Nevertheless, if Bitcoin clears all the obstacles on its path and bounces back,
“Then you are actually destroying the structure of making lower highs and lower lows and the next step is that you’re going to attack these highs once again.”
Pointing out the ongoing scenario, he added,
“It’s a good bounce that we’re seeing on Bitcoin right now, but most likely we’re going to see resistance. The emergence of a bullish divergence will make the market refuse to drop even further because of the bias pressure coming into the market and then you slowly start to adapt towards and upward trend.”
Hence, this seems to be the right stage for participants to enter the market before the flagship crypto’s price steams even further.
Projecting the upcoming “higher high,” when compared to the current market level, another analyst tweeted,
“A fakeout to the downside that failed to make a lower low and completed in 3 waves- implying this was a corrective move down and keeping the “completed ABC” count in-tact. I think we continue to push higher from here.”