Bitcoin (BTC) swiftly erased its month-to-date losses into June 7 as volatility returned to ultimately favor the bulls.
BTC price cancels Binance, Coinbase dip
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $27,388 on Bitstamp — almost a new June high.
The pair continued a rebound which had begun the day prior, with markets shaking off initial nerves from United States legal action over Binance and Coinbase.
In so doing, Bitcoin recovered all of its lost ground, returning to its previous trading range focused just below $27,000.
“Back to $27K. Great bounce from the 200-Week MA. Time to start the new uptrend to $38-42K on Bitcoin,” Michaël van de Poppe, founder and CEO of trading firm Eight, responded.
Van de Poppe referenced the 200-week moving average, an important support level which at $26,400 was lost for only a matter of hours.
A previous Twitter post called the BTC price correction “over,” echoing similar sentiment from popular traders.
“Bitcoin has retested the 200-week MA as support,” trader and analyst Rekt Capital confirmed.
“Downside wicking below the MA has taken place but $BTC has managed to hold above it.”
Rekt Capital had previously warned that a firm loss of the 200-week MA would result in a trip toward $20,000.
Analyzing the bounce itself, trading suite Decentrader saw cause for relief based on exchange trader behavior.
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
Commenting on the subsequent return below $27,000, analysts argued that it was increasing long positions holding the market back.
“We typically see a bit of a pullback until this is resolved,” they added.
Monitoring resource Material Indicators meanwhile tracked liquidity movements on the Binance order book, describing events as a “stairway to heaven” as conditions improved.
It nonetheless flagged $27,400 as a key area to break through, something which at the time of writing had not occurred.
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
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