The Bitcoin price is relatively stable, pushing higher, relieving the crypto market.
The coin is reversing from the psychological $40k level and several ticks away from $42k, January 2021 highs at the time of writing.
Still, Bitcoiners are buoyant.
There have been several explanations for this.
Safe Asian session losses triggered, apparently by Elon Musk implying breakup with BTC, what’s clear is that Bitcoin prices appear to be bottoming up after sharp losses of mid-May 2021, whose origins can be traced to late April 2021.
— Elon Musk (@elonmusk) June 4, 2021
Notably, the Bitcoin price is down five percent versus the USD on the last week of trading and at break-even against ETH at the back of decent trading volumes. Analysts are pinning this dip to Elon Musk’s tweet which comes barely weeks after Tesla said it would stop accepting BTC as payment.
BTC/USD Prices inching Higher from Spot Demand
Still, according to Matthew Dibb, the COO of Stack Funds, the deployment of new capital by crypto prices keeps BTC steady at spot rates.
The uptrend will only be validated once there is a close above $40k.
From data, the current uptrend is at the back of low-leverage, spot-driven purchases of BTC on pullbacks since funding rates are close to zero.
When funding rates rise, analysts interpret the development as a trending market pumped by high leverage traders.
One of those planning to buy the BTC dip is Francis Suarez, the Mayor of Miami City.
He has been on the front, pushing for the formulation and implementation of supportive crypto policies.
Bitcoin Forced Central Banks to Adopt Digital Currencies
Meanwhile, Pascal Blanque, the Chief Investment Officer (CIO) of Amundi, has described Bitcoin and cryptocurrencies as a farce and a market of financial bubbles.
While it forced central banks and governments to adopt digital currencies, they will soon stop the music for cryptocurrencies.
Bitcoin Technical Analysis
The BTC price is, as aforementioned, down five percent versus the USD on the last trading week.
From the daily chart, the BTC/USD price is trending inside May 19 bear bar. This is despite rising prices at the back of relatively low trading volumes.
Technically, the failure of bulls to unwind losses of May 19 is supportive of bears and may trigger another wave of lower lows in the days ahead.
Ideally, a close above $42k and May 19 highs, above the middle BB, would possibly mark the beginning of another leg up towards $62k in a buy trend continuation pattern.
On the reverse side, if bears flow back–from an Effort-versus-Results perspective–, forcing BTC below $30k, odds of bears driving BTC/USD back to $20k in a retest will be highly likely.
Still, aggressive traders can load the dips, targeting $40k and $42k as long as prices are above $34k—last week’s lows.
Chart Courtesy of Trading View
Disclosure: Opinions Expressed Are Not Investment Advice. Do Your Research.
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