Bloomberg senior commodity strategist Mike McGlone believes Bitcoin (BTC) is more likely to turn up and rally to $ 100,000 rather than correct to $ 20,000. In the June edition of the Bloomberg Galaxy Crypto Index report, McGlone said that Bitcoin’s correction had not dented its foundation and it was “stronger, greener and less extended” than in April.
While Bitcoin has yet to witness a surge in demand, data from Coinshares show crypto funds have turned the corner and after two weeks of outflows, investors have pumped $ 74 million into cryptocurrency.
Ether (ETH) products were leading the inflows with $ 47 million being pumped into them. Altcoins such as Cardano (ADA), Ripple (XRP) and Polkadot (DOT) each experienced more than $ 3 million in inflows.
Novice traders seem to be in a hurry for the next leg of the bull move to begin. However, that is unlikely to happen quickly because after the recent market reset, the transfer of assets from weaker hands to stronger hands will take time. The reactions to Elon Musk’s tweets show some froth still remains.
The crypto market may remain volatile as long-term investors are accumulating on lower levels but stopping their purchases at higher levels. Let’s analyze the charts of the top-10 cryptocurrencies and determine the critical support and resistance levels to watch out for.
Bitcoin rose above the resistance line of the symmetrical triangle on June 3 but the bulls could not push the price above the 20-day exponential moving average ($ 39,856). This suggests the sentiment remains negative and traders are selling on relief rallies.
The bears have pulled the price back into the triangle and they will now try to sink the price below the support line of the triangle. If they succeed, the BTC/USDT pair could retest the critical support zone at $ 30,000 to $ 28,000.
If this zone cracks, panic selling may set in and that could result in a drop to the next major support at $ 20,000. Such a deep fall could delay the start of the next leg of the uptrend.
The first sign of strength will be a breakout and close above the 20-day EMA. That will suggest the sentiment has improved and bulls are buying at higher levels. The rally could then extend to the 50-day simple moving average ($ 48,192).
Ether broke above the resistance line of the symmetrical triangle on June 3 but the bulls could not push the price above the 50-day SMA ($ 2,895). This may have attracted selling from short-term traders and the price dipped back into the triangle today.
Author: Cointelegraph By Rakesh Upadhyay
This post originally appeared on Cointelegraph.com News