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A sight to behold for tired eyes. On June 9th, Bitcoin surged by 12% on the charts, marking its greatest gain since the May 19 crash. In fact, the last time BTC increased by more than 12% was on February 8th. At press time, the price was stabilising over $37,500, indicating that the rise had not yet ended.
The creation of a significant bottom was one indicator of a definite bullish turnaround. Bitcoin’s daily price candle on June 9th closed above its prior three days of price movement, as shown in the charts. In the past, such a scenario has signalling an immediate bullish comeback.
However, under choppy market conditions, one signal is not enough. According to data, the price might have surged over the past 24 hours, due to a tiny short-squeeze.
According to Bybt.com, half a billion dollars in liquidations have already occurred, and big holdings have been established on Bitfinex. So, while Bitcoin is likely to climb in the short term, it may not spark an altcoin boom.
No fuel from Stablecoins?
One interesting discovery with stablecoins is that withdrawal transactions decreased at the same time Bitcoin increased. All incoming and outgoing transactions containing USDT withdrawal addresses are referred to as stablecoin withdrawal transactions (here, USDT). Withdrawal transactions lowering on the charts would imply that there are less orders coming in that are buying crypto-assets. In a nutshell, there is a weaker buildup.
Similarly, the CVD signal above indicated that market movers are not actively participating in price movement. The price is fluctuating and might land anywhere on the spectrum in the short future.
Ethereum/Bitcoin chart is hardly supportive
Except for Polkadot (10.4 percent to BTC’s 7.3 percent), none of the top 20 rated assets have equalled BTC’s surge in the last 24 hours, according to Coingecko. Ethereum increased by only 1.1 percent. Cardano’s price increased by barely 0.2 percent. The current decoupling of Ethereum from Bitcoin was also spotted on the ETH/BTC chart.
The ETH/BTC chart, which has been a reliable predictor for the Altcoin surge, has been falling in recent days. Because Bitcoin is now outperforming Ethereum, it is doubtful that other tokens will follow suit.
Now, on a yearly scale, Statistics continued to suggest that the ecosystem is still in an Altcoin Season but in the short term, the index has flipped towards Bitcoin. With Bitcoin unsure of its own rally range, Altcoins should not incur much over the current trading week.