Traders are debating if the $37K BTC price represents a trend reversal.

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A slew of positive Bitcoin adoption news aided in pushing the price of BTC back above $37,000, but traders are divided on whether the 20% increase signals a trend reversal.

On June 9, the cryptocurrency market flashed bullish as the price of Bitcoin (BTC) reversed direction and surged 20% to $37,500.

Analysts have been debating whether Bitcoin (BTC) was entering a long-term bear trend for several weeks, and the debate has been complicated by a mix of positive and negative headlines, including the adoption of Bitcoin (BTC) as legal tender in El Salvador and Chinese authorities ordering Chinese search engines to block results for searches related to the top crypto exchanges in the world.

Data from  TradingView shows that the price of Bitcoin has surged 20% from a low at $31,000 late on June 8 to an intraday high at $37,450 as bulls look to take control of the trend.

BTC/USDT 4-hour chart. Source: TradingView

Many regard the surge up as a positive trend, like Mike McGlone, senior commodities strategist at Bloomberg Intelligence, who now believes that BTC is more likely to hit $40,000 than fall below $20,000. Traders such as Rekt Capital, on the other hand, feel that BTC has to close over $32,000 on a weekly basis in order to avoid further decline.

The coming days will determine the fate of the bull run

The continual stream of good headlines, paired with China’s intensified regulatory enforcement, has some traders wondering whether a bullish reversal is imminent or if the present market movement is nothing more than a bull trap.

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The distinct head and shoulders pattern shown on the BTC chart, according to Delphi Digital, is a possible negative indication.

 

Bitcoin head and shoulders pattern. Source: Delphi Digital

Despite this bearish pattern, the analysts also noted that a bullish RSI divergence has also formed, indicating the possibility of a trend reversal in the near future.

Bitcoin price and a bullish divergence on the RSI.  Source: Delphi Digital

According to Élie Le Rest, partner at digital asset management firm ExoAlpha, “the thesis for Bitcoin as a store of value is stronger than ever,” but the leading cryptocurrency “needs to increase its dominance” if the current bull run is to continue.

Le Rest described El Salvador’s decision to accept Bitcoin as legal cash as a “huge step forwards towards Bitcoin adoption,” and he expects more governments to follow suit in the coming months and years.

Regarding Bitcoin’s future prospects, Le Rest stated that, following the recent lower level retest of the $30,000 to $40,000 area, a break above $40,000 “could resume the bull run that occurred a month ago.”

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Le Rest said:

“Traders still have some doubts on where the market is heading, so leverage has remained relatively low as forced liquidations have been painful since May. Breaking $40,000 could give the boost in traders confidence to leverage again their book to power new highs of the crypto market.”

Traders have also been keeping a close eye on Ether (ETH), and Le Rest described the “massive ETH outflow” seen on June 8 as “a positive sign that the ETH bull run is not yet over,” but he cautioned that alternative chains such as the Binance Smart Chain, Solana, and Avalanche “are putting a lot of efforts to take their DeFi market share.”

Altcoins rally alongside Bitcoin

Daily cryptocurrency market performance. Source: Coin360

Many cryptocurrencies benefited from Bitcoin’s surge to $37,500.

Ether’s price increased 14 percent from a low of $2,300 on June 8 to an intraday high at $2,630, according to Delphi Digital, and the price is being supported by a decrease in Ether’s circulating supply, as 23 percent of its supply is now locked up smart contracts.

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Ether supply locked in smart contracts vs. price. Source: Delphi Digital

Traders are debating if the $37K BTC price represents a trend reversal.

A slew of positive Bitcoin adoption news aided in pushing the price of BTC back above $37,000, but traders are divided on whether the 20% increase signals a trend reversal.

On June 9, the cryptocurrency market flashed bullish as the price of Bitcoin (BTC) reversed direction and surged 20% to $37,500.

 

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