Bitcoin (BTC) quickly recovered its month-to-date losses on June 7 as volatility returned, favoring 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 that began the day before, with markets shaking off initial nerves from the US Securities and Exchange Commission’s legal action against Binance and Coinbase.
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,” responded Michaël van de Poppe, founder and CEO of trading firm Eight.
Van de Poppe referenced the 200-week moving average (MA), an important support level which, at $26,400, was only lost for a few hours.
“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.
The 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. pic.twitter.com/zzZCePK1LB
— Decentrader (@decentrader) June 7, 2023
Analysts argued that increasing long positions were holding the market back, commenting on the subsequent return below $27,000.
Monitoring resource Material Indicators tracked liquidity movements on the Binance order book, describing events as a “stairway to heaven” as conditions improved. It flagged $27,400 as a key area to break through, something which had not occurred at the time of writing.
Hayes: Bitcoin has scaled “wall of worry”
Arthur Hayes, former CEO of derivatives exchange BitMEX, remained unshaken in his faith in BTC price action moving to a better place.
In ongoing social media reactions, Hayes called on hodlers to wait for the full return of the Bitcoin bull market.
“The wall of worry is being climbed, come with me on the $BTC bull market bus,” he wrote about the rebound. “We are still on struggle street, but the moon ain’t far away.”
The day prior, Hayes had cautioned over “FUD” surrounding Binance, arguing that risk assets were responding to bigger macroeconomic problems, which would, in turn, be resolved.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
