Bitcoin (BTC) returned firmly to its trading range on June 7 after a fresh up move was met with a quick sell-off.
“One of the best chops we’ve seen”
Data from Cryptooshala Markets Pro and trade view showed BTC/USD deviating decisively from the resistance it last encountered on June 1st.
The pair was delivering over 6% daily gains, but approaching $32,000 changed the mood and Bitcoin returned almost $2,500 in a matter of hours.
Thus, the classic “Bart Simpson” structure formed on the hourly timeframes when frustrated traders resigned themselves to the fact that the existing paradigm remained unchanged.
“Standard price action is back on Bitcoin, with all the lows marked,” Cryptooshala contributor Mikael van de Poppe. wrote in a twitter update.
“If we’re holding around $29K, there still seems to be enough reason to go for a small run. (And the $29k area is still CME gap territory.)
In addition to the gap in CME futures providing potential target at pre-rise levels, online analyst Material Indicators noted significant buying interest already building at these levels.
#FireCharts 2.0 (beta) shows $60 million in #BTC the liquidity of the offer increased to $29,000. Whether it is secured, filled, or tampered with determines the next trade. #crypto #tradingstrategy https://t.co/iCsO8yQgDB pic.twitter.com/Du6uXRc9U1
– Material Indicators (@MI_Algos) June 7, 2022
If that doesn’t work, the next targets will be centered around $28,000.
There wasn’t much reaction going through it, so this level is now likely to act as resistance. At the moment I think we are probing towards red x lows. Can see some relief between them. Again, all of these side hooks and ranging are part of the lowering process. $BTS https://t.co/vx7qpIaUjf pic.twitter.com/x3pwqEjFeN
— CrediBULL Crypto (@CredibleCrypto) June 7, 2022
“I will just look for short opportunities in this range,” Crypto trading account colleague Tony. continuationindicating a continuation of the overall downtrend.
“Either we lose the low of the range and retest the short position, or if we retest the EQ of the range and give up, I will look for a short position. Bad until one of those triggers goes off.”
One market participant is not at all surprised The short-term action was Filbfilb, co-founder of the Decentrader trading platform.
“One of the best chops we’ve ever seen, very high quality stuff,” he joked.
“I would say it’s always the same, people are desperate not to miss the ‘bottom’, but this case is especially funny because it unfolds instantly. Trade hunters go bust.”
Long traders struggling with volatility triggered 24-hour liquidations totaling $60 million for BTC and another $158 million for altcoins, according to the analytics platform. coin glass confirmed.
Stock correlation is blurry
As such, bitcoin altcoins have lagged far behind the conditionally correlated US stocks.
BTC price records the longest losing streak in history – 5 things to know about bitcoin this week
Both the S&P 500 and the Nasdaq Composite ended the trading session on June 6 higher than the open, which called into question their attitude towards cryptocurrency.
Yassin Elmanjra, a crypto asset analyst at ARK Invest, nonetheless noted that Bitcoin’s overall correlation with the S&P has hit new all-time highs in the last 30 days.
Bitcoin’s correlation with the S&P 500 hits an all-time high. pic.twitter.com/jwT5KQWeIQ
— Yassine Elmandgra (@yassineARK) June 3, 2022
Discussing further BTC price movement, he argued that the “major” trend lines remained intact on BTC/USD, even with the May drop to $23,800. This, as reported by Cryptooshala, is still ripe for retesting in the eyes of many.
The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cryptooshala.com. Every investment and trading step involves risk, you should do your own research when making a decision.
Credit : cointelegraph.com